Wrap Text
GLN - Alternative proposal to acquire Teck’s steelmaking coal business
GLENCORE PLC
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
ISIN: JE00B4T3BW64
LEI: 2138002658CPO9NBH955
Baar, Switzerland
12 June 2023
Glencore confirms that it submitted alternative proposal
to acquire Teck’s steelmaking coal business
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:
Investors
Martin Fewings t: +41 41 709 28 80 m: +41 79 737 56 42 martin.fewings@glencore.com
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
www.glencore.com
This announcement contains inside information.
Glencore LEI: 2138002658CPO9NBH955
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 glencore.com/publications.
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Disclaimer
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.
Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited
Date: 12-06-2023 08:15:00
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