Glencore Plc stated on November 14 that it has agreed to acquire a 77 percent stake in Teck Resources Limited's steelmaking coal sector for $6.93 billion in cash, leaving India's JSW Steel behind.
At the same time, Nippon Steel Corporation will increase its holdings in Elk Valley Resources (EVR), Teck's meteorological coal business unit.
According to a statement from Switzerland-based Glencore, POSCO of South Korea would get a 3% investment in Teck's coal segment in exchange for its 2.5 percent ownership in Elkview Operations and its 20% participation in the Greenhills joint venture.
According to the firm, the transaction will be completed in the third quarter of 2024.
Last month, the steel group founded by Sajjan Jindal maintained that its plans for a potential equity purchase in Teck's subsidiary had not changed.
"Our priorities haven't changed." "We will continue to engage in discussions with the company, and if there is value and merit in the asset, we will look at it," Jayant Acharya, Joint Managing Director and Chief Executive Officer of JSW Steel, said in an exclusive interview with Moneycontrol on October 23.
JSW Steel declined to comment, while Teck Resources did not respond to a request for comment swiftly. According to insiders, JSW planned to buy a 20% to 40% stake in EVR.
