Glencore makes an alternative bid for Teck Resources’ coal assets

Teck Resources Limited (NYSE: TECK) is trading slightly down today after Glencore PLC (LON: GLEN) revealed interest in buying its steelmaking coal business.

Glencore failed to fully acquire Teck Resources

Remember that the world’s most profitable mining company has already made two failed attempts to fully acquire Teck Resources.

The new proposal aims to combine its coat assets with Teck’s and separate them as a new company called CoalCo within a year or two.

Its original $23 billion full takeover bid in April had disclosed plans of such a demerger as well. Glencore also confirmed that its previous offer still stands and the new one that’s restricted to Teck’s coal business is being put forth only as an alternative.  

At writing, shares of the Swiss multinational are trading up only marginally.

Teck Resources is considering the new proposal

Also on Monday, Teck Resources confirmed that it was engaging with the London-listed firm – proposal from whom was one of many it has received for its coal assets. The natural resources company also said that it was considering all value-accretive proposals.

Interestingly, the news arrives at a time when rivals are increasingly committing to divesting out of coal. Glencore, though, intends to wind down that business and hit net-zero by 2050. Its press release reads:

Glencore is committed to ensuring that the proposed EVR acquisition would benefit Canada and to working with Teck to identify commitments for the benefit of all relevant stakeholders.

Glencore stock is currently down about 25% versus its year-to-date high.