Glencore confirms that it submitted alternative proposal to acquire Teck’s steelmaking coal business
12 June 2023
In response to press reports, Glencore plc (“Glencore”) confirms that it submitted a proposal to the Board of Directors of Teck Resources Limited (“Teck”) in which it offered to acquire Teck’s steelmaking coal business (“EVR”) for cash (“Proposed EVR Acquisition”).
While Glencore remains willing to pursue its Proposed Merger Demerger, Glencore has made this alternative proposal to acquire EVR as it is expected to allow for a value accretive demerger of the combined coal and carbon steel materials business (“CoalCo”) to its shareholders. We also note continued strong support from shareholders for a transaction between Glencore and Teck.
If a transaction were to materialise, Glencore would demerge CoalCo, once Glencore has sufficiently delevered, which is expected approximately 12-24 months from close. Glencore would manage its post-demerger balance sheet, post servicing its formulaic base distribution, to a revised c.US$5 billion net debt cap, down from the current level of c.US$10 billion, alongside our continued commitment to minimum strong BBB/Baa ratings.
Glencore is fully committed to ensuring that the Proposed EVR Acquisition would benefit Canada and is open to working with Teck to identify a comprehensive suite of commitments for the benefit of all relevant stakeholders which would, amongst others, maintain and, where feasible, enhance EVR’s existing presence and capital investments in Canada as well as its community, social, labour and environmental programmes.
There is no certainty that any transaction will occur and further updates will be provided as necessary.
For further information please contact:
t: +41 41 709 28 80
m: +41 79 737 56 42
t: +41 41 709 24 62
m: +41 79 904 33 20
This announcement contains inside information.
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Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities that advance everyday life. Through a network of assets, customers and suppliers that spans the globe, we produce, process, recycle, source, market and distribute the commodities that support decarbonisation while meeting the energy needs of today.
With around 140,000 employees and contractors and a strong footprint in over 35 countries in both established and emerging regions for natural resources, our marketing and industrial activities are supported by a global network of more than 40 offices.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers and consumers of commodities.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative.
We recognise our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement by decarbonising our own operational footprint. We believe that we should take a holistic approach and have considered our commitment through the lens of our global industrial emissions. Against a 2019 baseline, we are committed to reducing our Scope 1, 2 and 3 industrial emissions by 15% by the end of 2026, 50% by the end of 2035 and we have an ambition to achieve net zero industrial emissions by the end of 2050. For more detail see our 2022 Climate Report on the publication page of our website at
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to refer collectively to members of the Group or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.