Raw materials Glencore receives approval from Canada for Teck takeover

Glencore has received the green light in Canada for the billion-euro takeover of the Teck coal business. However, Glencore also had to make numerous commitments to the Canadian government. The EU has already approved the acquisition.

Following a comprehensive review, Canadian Industry Minister François-Philippe Champagne has decided to approve Glencore's takeover of Teck's coal business "subject to strict conditions", as the responsible ministry announced on Thursday. Among other things, Glencore made numerous commitments to maintain branches and jobs and to protect the environment.

The Swiss commodities group is paying around 6.9 billion US dollars for a 77 percent stake in Teck's coal business. Glencore expects the deal to close in the third quarter of 2024, according to earlier statements.

The deal was preceded by a long battle between Teck and Glencore. Glencore originally wanted to take over the company in its entirety and then spin off the combined coal business. However, Teck successfully fought against these plans.

SDA