TECK Resources conducted intermittent merger negotiations with Vale’s base metals division before finalising its agreement with Anglo American, said Bloomberg News citing people with knowledge of the discussions.
The Canadian miner revealed on Monday it had held parallel conversations with an unnamed company whilst negotiating with Anglo, according to documents distributed to shareholders about the $40bn transaction with the London-based group. Sources identified the anonymous suitor as Vale Base Metals.
Both Teck and Vale declined to comment. The Globe and Mail, a Canadian newspaper, previously reported the talks between the two companies, said Bloomberg News.
Negotiations with the undisclosed party commenced in May 2023 but repeatedly faltered due to disagreements over valuation and governance matters, according to Teck’s November 10 filing.
The discussions collapsed last May and were not resumed, whilst Teck advanced its negotiations with Anglo, said the newswire. The companies announced their combination in September, creating a mining powerhouse encompassing copper, zinc and iron ore operations.
The mining sector has witnessed significant consolidation activity over the past two years, with BHP Group mounting an unsuccessful attempt to acquire Anglo in 2024 and Rio Tinto holding discussions to purchase Glencore. Teck’s talks with Anglo and Vale began shortly after the company rejected an unsolicited $23bn approach from Glencore. Bloomberg reported last year that Toronto-based Vale Base Metals had examined a potential transaction with Teck.
Major mining companies have long coveted Teck’s copper portfolio, particularly its flagship Quebrada Blanca mine in Chile. The operation sits adjacent to Collahuasi, one of the world’s largest copper deposits, jointly owned by Anglo and Glencore.
Teck and Anglo have scheduled shareholder votes on the merger for December 9.
