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InsideArbitrage Potential Deal Alert: Teck Resources Limited (TECK) approached by Glencore

  • April 27, 2023

POTENTIAL DEAL DETAILS

StockTeck Resources LimitedSymbolTECK
Date Announced04/03/2023Source Press Release
TypeUnsolicited BidAcquiring Company/Person Glencore plc

Teck Resources Limited (TECK) announced that the Board of Directors of Teck has received and unanimously rejected an unsolicited and opportunistic acquisition proposal from Glencore plc, which would see that company acquire Teck and subsequently separate to create two businesses, which would expose Teck shareholders to thermal coal and oil trading.

Dr. Norman Keevil’s Statement in Response to Teck’s Rejection of Unsolicited Proposal – April 3, 2023

Teck Response Letter to Unsolicited Acquisition Proposal – April 3, 2023

Investor Presentation – April 10, 2023

Update(s):

April 10, 2023: Teck Resources Limited (TECK) reaffirmed the strong rationale for its pending separation as the optimal pathway to maximize shareholder value.

April 13, 2023: Teck Resources Limited (TECK) announced that its Board of Directors has reviewed and unanimously rejected a revised unsolicited acquisition proposal from Glencore plc, received on April 11, 2023.

Glencore offered $23B to buy Teck (TECK) earlier this month and then revised the bid to include an $8.2B cash component to buy out Teck shareholders.

Statement from Dr. Norman Keevil – April 16, 2023

Teck Chairman Emeritus Dr. Norman B. Keevil: I would support a transaction – whether it be an operating partnership, merger, acquisition, or sale – with the right partner, on the right terms for Teck Metals after separation.  Based on my decades of experience building a successful mining company, I believe that pursuing a sale or merger transaction now would rob our shareholders of significant post-separation value.

April 19, 2023: Glencore Plc said it’s willing to raise its bid for Teck Resources Ltd. (TECK) in the latest attempt to sway shareholders and pressure Teck’s board, with just one week to go before a pivotal vote.

April 26, 2023: Teck Resources Ltd (TECK) withdrew its plan to split in two, a surprise development just ahead of a key shareholder vote, as the miner sought to fend off a $22.5 billion takeover attempt from Glencore Plc.

May 30, 2023: According to Bloomberg, Glencore Plc is getting closer to increasing its offer for Teck Resources (TECK).

November 14, 2023: Teck Resources Limited (TECK) announced it has agreed to sell its entire interest in its steelmaking coal business, Elk Valley Resources, through a sale of a majority stake to Glencore plc for an implied enterprise value of $9 billion, and a sale of a minority stake to Nippon Steel Corporation.

Disclaimer: Our intent with this section of the website is to present potential deals that appear to be in the pipeline. These potential deals are ones where i) the company has indicated that it is "seeking strategic alternatives", ii) there has been an unsolicited bid for a company as mentioned in a press release by the company or iii) news about the deal has been published by a leading news organization like The Wall Street Journal, The New York Times, Bloomberg, Financial Times, The Washington Post, Reuters and The Associated Press. As best as possible we will try to avoid baseless rumors. There is a high probability that many of these potential deals may not materialize and if they do, the terms of the deal may be different from what was initially reported. Please do your own due diligence before buying or selling any securities mentioned on this website. We do not warrant the completeness or accuracy of the content or data provided.