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Teck Resources rejects unsolicited takeover offer from Glencore

Mining company’s board chair says it is not contemplating a sale at this time
The corporate logo of Teck Resources Limited is shown. THE CANADIAN PRESS/HO

Teck Resources Ltd. says it has rejected an unsolicited takeover offer from Glencore.

Teck board chair Sheila Murray says it is not contemplating a sale of the company at this time.

Teck announced a plan earlier this year to split the company in two, separating its steelmaking coal business from its base metals operations.

Murray says the board believes the company’s plan creates a greater spectrum of opportunities to maximize value for Teck shareholders.

Teck says the offer from Glencore was for 7.78 Glencore shares for each Teck class B subordinate voting share and 12.73 Glencore shares for each Teck class A share, a 20 per cent premium for both on the date of the offer.

Teck CEO Jonathan Price says the proposal would expose Teck shareholders to a large thermal coal business, an oil trading business and significant jurisdictional risk, all of which he says would hurt the value potential of Teck’s business.

READ MORE: Teck Resources to split company and spin off steelmaking coal business