JSW Steel’s bid to acquire a majority stake in Teck Resources Ltd’s coal business has fallen through with the Canadian company picking the offer from Swiss mining major Glencore Plc.
Glencore will pay $6.93 billion for a 77 per cent stake in Teck’s business, while steelmakers Nippon Steel Corp and Posco, which currently own minority stakes in Teck coal mines, will hold the rest.
The Canadian major operates four mines (for steel-making coal) in British Colombia region — Elkview, Fording River, Greenhills and Line Creek. Nearly 60 per cent of the company’s revenues come from the segment whose annual production was around 22 million tonnes in 2022.
Going slow
In September, businessline had reported that amidst an escalating India-Canada diplomatic tensions, JSW Steel is reportedly going slow on its plans to acquire coal unit of Canada’s Teck Resources.
In October, JSW Steel Chief Executive Jayant Acharya told Reuters that “there is nothing concrete on Teck. We are in discussion with strategic possibilities among which Teck is one.”