CANADA’S Teck Resources has become the focus of merger and acquisition chatter in global mining sector that’s become obsessed with increasing copper production, according to a recent article by Bloomberg News.
The newswire service cited unnamed sources saying Anglo American and BHP, involved in their own M&A tangle earlier this year, were interested in buying Teck for its copper. Vale, Freeport McMoRan and Rio Tinto have also been linked with the Canadians.
Teck recently repelled a takeover offer from Glencore but then later sold its coal to the Swiss headquartered miner. Bloomberg expressed doubts as to whether Teck’s main shareholder, the Keevil family, would be interested in more M&A, however.
“The buzz around Teck comes against the backdrop of a wider revival of dealmaking in the global mining industry, after the biggest names spent most of the previous decade sitting on the sidelines,” said Bloomberg News.
“Among the potential bidders or partners for Teck, Vale’s copper and nickel business is seen as a possible frontrunner, and executives from the company have expressed confidence in their ability to do a deal, according to people with knowledge of the conversations,” it said.
While Anglo could also be a bidder, the newswire agency said the UK listed miner first had to complete a restructuring of its own in which it’s selling or demerging its diamonds business, selling its metallurgical coal and unbundling Amplats, a miner of platinum group metals in South Africa. That process is not expected to close until the end of 2025.
“Anglo’s banks had already been tasked with studying a potential merger with Teck before BHP’s approach and the company’s management are still keen on the idea, according to people familiar with the matter,” said Bloomberg News.
