Glencore makes offer for Teck steelmaking coal business

Glencore on Monday said it had offered to buy Teck Resources' steelmaking coal business as a standalone unit.

The Swiss mining and trading giant said it had made the alternative proposal "as it is expected to allow for a value accretive demerger of the combined coal and carbon steel materials business".

Glencore has been chasing Teck without success with the Canadian miner rejectingmultiple offers. The latest offer woul see Glencore buy Teck’s steelmaking coal business for an undisclosed valuation and then demerge it as a new company combining its own coal and Teck’s coal assets later.

"We also note continued strong support from shareholders for a transaction between Glencore and Teck," it added.

Teck said it was engaging with Glencore to discuss the potential coal deal but noted Glencore’s was just “one of a number” of proposals under consideration.

Glencore in April made an unsolicited offer for all of Teck and planned to split the combined assets of the merged companies.

Reporting by Frank Prenesti for Sharecast.com