Teck planning full exit from coal business, in event of partial sale will spin off remainder – by Niall McGee (Globe and Mail – August 18, 2023)


Teck Resources Ltd. intends to completely exit its coal business, but in the event of only a partial sale, would spin off the remainder to ensure a clean break, a source familiar with the situation said. The Vancouver-based mining company has been entertaining a variety of bids for its metallurgical coal business since late April after an earlier restructuring plan failed.

Teck chief executive officer Jonathan Price said in a conference call last month that there has been “a lot of interest” in the coal business since it was put out for tender. Glencore PLC of Switzerland is the only known bidder for 100 per cent of the coal segment, with an offer worth up to US$8.2-billion.

While that would appear to give Glencore a competitive advantage, the source said that Teck could also go the route of selling only a portion of the business to another party, and spinning off the remainder to its shareholders, if it deems that to be a better deal for stakeholders.

The Globe and Mail is not identifying the source because the person was not authorized to speak publicly. Teck declined comment for this story.

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