In a significant development, a consortium led by Swiss mining giant Glencore Plc has emerged victorious over India’s JSW Steel in the bid to acquire the coking coal business of Canada’s Teck Resources Limited.
Glencore announced a notable agreement on Tuesday, revealing that it has signed a deal with Teck Resources to secure a 77 percent stake in the company's steelmaking coal unit for a substantial sum of $6.93 billion in cash.
Simultaneously, Nippon Steel Corporation is set to acquire additional equity in Teck’s meteorological coal business unit, Elk Valley Resources (EVR).
Adding to the complexity of the deal, South Korea's POSCO will also acquire a 3 percent stake in Teck’s coal unit. In exchange, it will relinquish its 2.5 percent interest in Elkview Operations and its 20 percent interest in the Greenhills joint venture, as outlined in Glencore's official statement.
The overall transaction, valued at $9 billion, is anticipated to be finalized in the third quarter of 2024.
It's worth noting that JSW Steel, led by Sajjan Jindal, had expressed keen interest in acquiring a stake in Teck’s unit. Despite diplomatic tensions between India and Canada following the killing of separatist Sikh leader Hardeep Singh Nijjar, JSW Steel remained hopeful of securing a deal. However, the consortium led by Glencore ultimately prevailed in the competitive bidding process.
(With Agency Inputs)
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