A consortium led by Swiss-based resource major Glencore Plc has pipped India’s JSW Steel Limited in acquiring the coking coal assets of Canada’s Teck Resources Limited, industry sources said on Wednesday, November 15, citing an announcement by Glencore.
In an agreement signed between Glencore and Teck Resources, the former will acquire a 77 percent stake in the company’s coking coal assets for $6.943 billion in cash and, concurrently, Japan’s Nippon Steel Corporation will also acquire additional equity in the metallurgical coal business of Teck Resources held under Elk Valley Resources.
South Korea’s POSCO will also pick up a three percent stake in the coal business in exchange for its 2.5 percent existing interest in Elkview Operations and 20 percent existing stake in Greenhill ventures, Glencore said in the statement.
India’s JSW Steel Limited had also been in the race to acquire the coking coal assets of Teck Resources but negotiations were put on the backburner following the worsening of diplomatic relations between India and Canada, with the latter accusing India of being involved in killing of a Canadian citizen of Indian origin labelled as an extremist by India.