Glencore Says Teck Proposal Still Stands, Willing to Consider Improvements — Update

   By Ian Walker 
 

Glencore PLC said Thursday that its proposal to Teck Resources Ltd. still stands after Teck dropped plans to separate its steelmaking coal operations from the company's base-metals business hours before shareholders were due to vote on the proposal.

The Anglo-Swiss commodity mining and trading company also reiterated that it would be prepared to consider improvements to its merger, demerger proposal for Teck if its board were willing to engage with it, but would also be willing to go directly to its shareholders if not.

"Glencore confirms that its proposal still stands, and, as previously stated, we remain willing to engage with the board and management of Teck to attempt to address the issues they have raised. We believe that with engagement, we could further improve our proposal's structure, terms and value, which would be in the best interests of all Teck shareholders," Glencore said Thursday.

On Wednesday, Teck shareholders were set to vote at its annual meeting on a proposal that would've created two standalone companies, but with ties between them that would have ensure the coal operations helped fund copper projects that underpin the base metals company.

Teck said shareholders it heard from were overwhelmingly in favor of a split, but that many would prefer a more direct approach to a separation of the company.

Chief Executive Jonathan Price said a takeover approach by Glencore remained a non-starter, though he added mergers and acquisitions could play a role for Teck with the "right approach, at the right time." The separation process had unearthed interest in Teck's businesses, he said Wednesday.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

April 27, 2023 03:05 ET (07:05 GMT)

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