Tech rejects Glencore’s $22.5 billion merger proposal

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Tech rejects Glencore's $22.5 billion merger proposal

The board of directors of Canadian miner Teck Resources unanimously rejected an unsolicited $22.5 billion merger offer by Swiss company Glencore that aims to achieve synergy of up to $5.25 billion by merging its Quebrada Blanca II and Collahuasi copper projects in North Carolina. Chile.

“Glencore’s proposal would expose Teck shareholders of its large thermal coal business, crude oil trading business, and significant litigation risk, all of which would have a negative impact on the potential value of Teck’s business, and run counter to our ESG commitments and transfers,” said Jonathan Pryce, CEO. To Tik: “Too much value for Glencore at the expense of Tik shareholders.”

After reviewing the all-share offer with a panel of financial and legal experts and advisors, Teck’s board of directors has concluded that it is best to proceed with its own process to spin off Teck Metals and Elk Valley Resources.

Glencore’s plan to split the business units of both companies into two entities, CoalCo and MetalsCo, was seen as an opportunistic attempt to benefit shareholders of the Swiss metals trading company. goodsAdded company that is based in Vancouver.

Additionally, it comes at a time when Teck is accelerating deployment of the QB2 after announcing its first production copper.

Teck said Glencore’s bid would introduce regulatory and enforcement complexities by including a large number of jurisdictions, raw materials and approvals yet to be processed with various competition agencies and regulators.

More details about Tech’s position can be reviewed in the letter sent from the Chairman of the Board, Sheila Murray (see attached document on the right-hand side of the screen).

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Tech called on its shareholders to approve its reorganization at its next shareholder meeting on April 26.

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Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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