The Canadian Government has approved Glencore acquiring a 77 per cent stake in Elk Valley Resources (EVR), Teck Resources’ steelmaking coal subsidiary.
Clearance from the Canadian Government was the final acquisition hurdle Glencore required for the transaction, which is expected to close on July 11.
“We are pleased to have received final regulatory approval for the transaction and look forward to completing the acquisition and welcoming EVR into the Glencore group,” Glencore chief executive officer Gary Nagle said.
“Glencore’s Canadian assets form a significant part of our global business, and some have a history that dates back more than 100 years. The investment in EVR will further support our position as one of the largest diversified miners and suppliers of critical minerals in Canada.”
In early April 2023, Teck turned down Glencore’s $US23 billion offer, which lead to the major miner adding $US8.2 billion in cash to the takeover offer.
Not long after this, Teck withdrew its proposal to split the company, which industry experts said may cause Glencore to attempt another takeover offer. Glencore lobbed an alternative proposal for the takeover in June 2023.
Five months later in November, it was announced that Glencore would acquire 77 per cent stake in EVR for $US6.93 billion.
Nagle said since then Glencore has worked to ensure the transaction will benefit all stakeholders.
“We have made significant commitments to the Canadian government aimed at ensuring the transaction is of lasting benefit to Canada and British Columbia including in relation to employment, the environment and engaging constructively and meaningfully with the Indigenous Nations in the Elk Valley,” Nagle said.
“The acquisition of EVR will further enhance the quality of our portfolio, broadening our ability to provide high quality steelmaking coal, an important transition-enabling commodity, to customers around the world as well as contributing significant expected cashflows to the Glencore Group.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
