Glencore to Acquire Majority Stake in Teck Resources' Coal Business

Deal Valued at $6.93 Billion Expected to Close in 2024 Amid Strong Demand for Coking Coal

Glencore has agreed to buy a 77% stake in Teck Resources' steelmaking coal business for $6.93 billion in cash, with 20% going to Japan's Nippon Steel Corporation.
The deal is expected to close in the third quarter of 2024, and Glencore plans to spin off the combined coking coal and thermal coal assets within two years of the deal's closing.
Coking coal, used to make steel, is seen as a crucial component in the shift to renewable energy, with demand driven by Asia remaining strong.
Despite increased scrutiny of foreign investments, the deal is expected to be approved by the Canadian government, with Glencore making a 28-point commitment to keep the company headquartered in Vancouver with a majority of Canadian nationals in leadership roles.
Glencore's CEO Gary Nagle reiterated the company's commitment to phasing out its thermal coal assets over time, but believes demand for both thermal and coking coal will continue to be strong for years to come.