OPINION: Teck isn’t falling into Glencore’s arms and Ottawa isn’t offering its blessing either – by Andrew Willis (Globe and Mail – April 25, 2023)


If Glencore PLC’s pursuit of Teck Resources Ltd. was a Hollywood romantic comedy, we could all write the ending. After a period of high-spirited sparring, this corporate rom-com would climax this week with two crazy kids realizing what the rest of us recognized from the start: that their copper and coal belong together. Harry marries Sally. Glencore merges with Teck. Cue rave reviews.

But mining isn’t the movies. Teck is not falling gracefully into Glencore’s waiting arms, even if the Vancouver-based company’s shareholders turn down the proposed spin-out of Teck’s massive coal business in Wednesday’s vote.

The swift end to this drama anticipated by some investors, such as hedge funds that piled into Teck stock in recent weeks, simply isn’t in the cards. Among the many barriers to a deal: the Canadian government’s nascent strategy for building a homegrown critical minerals mining industry.

At Teck, the plot in any takeover drama is dictated by one player, chair emeritus Dr. Norman Keevil. As controlling shareholder for the foreseeable future – this week, Teck shareholders are expected to approve a six-year sunset provision on the dual-share structure that gives control to the founding family – Dr. Keevil can just say no to Glencore. To date, he has done so.

For the rest of this column: https://www.theglobeandmail.com/business/commentary/article-teck-glencore-mining-government-opposition/