Glencore Approached Teck About Buying Coal Assets, WSJ Reports

Glencore Plc approached Teck Resources Ltd. about buying just its coal assets, an alternative to a previous plan to buy the entire company for $23 billion, the Wall Street Journal reported, citing people familiar with the matter.

(Bloomberg) — Glencore Plc approached Teck Resources Ltd. about buying just its coal assets, an alternative to a previous plan to buy the entire company for $23 billion, the Wall Street Journal reported, citing people familiar with the matter.

Teck isn’t talking with Glencore about the bigger acquisition or the coal business, according to the people. The Swiss commodities giant previously valued Teck’s coal business at about $8.2 billion.

The Canadian miner said Tuesday it received several proposals for deals involving its coal operations. Teck’s plans to exit coal and create a standalone base-metals company suffered a blow in April when it failed to win enough shareholder support for a complicated spinoff proposal.

Read more: Teck Struggles to Secure Top Shareholder’s Support on Coal Split

A Glencore spokesperson declined a Journal request for comment. A Teck spokesperson referred to a company statement last week that said it received multiple signals of interest regarding potential transactions of its coal business, but didn’t specify which parties were interested.

More stories like this are available on bloomberg.com