In November, a consortium led by Glencore finalized one of the largest deals in the mining sector by acquiring Teck Resources’ steelmaking coal unit for $9 billion. Swiss miner Glencore will receive 77% of the business in a $6.9 billion cash transaction, while Japan’s Nippon Steel Corporation, which already has a 2.5% stake, will get 20%. South Korea’s POSCO will exchange a stake in two of Teck’s coal operations for 3% in the steelmaking coal business Elk Valley Resources.
The Canadian Industry Minister Francois-Philippe Champagne had been evaluating the deal based on net benefit and national security considerations, according to a report. The minister’s office did not respond to a request for comment from Reuters. The Globe and Mail reported, citing unnamed sources, that Canada was planning to approve the deal with various legally binding conditions.
The approval of the deal with conditions is expected to move forward after the review by the minister. The deal marks a significant development in the mining sector and solidifies the positions of Glencore, Nippon Steel Corporation, and POSCO in the steelmaking coal business. Overall, this deal showcases the global nature of the mining industry and the strategic partnerships that are formed to strengthen operations in key sectors.
