Teck Resources Ltd. spent four years mulling options for its steelmaking coal business before deciding to separate it from its base metals operations.
Canada’s largest diversified miner started weighing a spinoff in 2019 after noticing a change in investor attitudes toward coal, according to corporate filings released Monday. The C-suite heard presentations from bankers and consultants and considered options that included a joint venture, selling a minority stake and a sale to private equity.
After dozens of meetings, the board and management decided in February that the best option was to separate the coal division and keep a stream of its cash flow.
The plans to separate the lucrative coal business now face a potential obstacle after Swiss commodities giant Glencore Plc proposed a $23 billion takeover of the Vancouver-based company on March 26. Teck rejected Glencore’s pitch on Monday and said it will forge ahead with a shareholder vote set for April 26 to approve its plan to split the company’s two main businesses.
(By Jacob Lorinc)
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