Glencore Boosts Teck Resources Copper Race with New Bid

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Glencore’s bold bid to take over Teck Resources has revived the resources sector, sparking a slew of other multi-billion dollar takeover bids in the copper space. The combined copper business of Glencore and Teck, if the deal goes through, would make them the world’s third largest copper producer with a production capacity of 1.4mn tonnes.

Copper is in high demand with its essential role in electrical wiring, grid infrastructure, wind turbines, and even electric vehicles, as the world transitions to green energy sources. Copper demand is estimated to reach 40 million tonnes by 2030, and miners must compete for the dwindling amount of high-grade copper deposits to keep up with the demand.

Other big mining deals include BHP’s $6.5bn offer for Oz Minerals, Rio Tinto’s takeover of Turquoise Hill and Newmont’s $17bn bid for Newcrest. Teck understood the value of its metals business, and had already begun to separate itself into a metals company and a coal company before Glencore’s offer.

However, the offer is being rejected by Teck’s former chair, Norman Keevil, who controls 55% of the supervoting Class A shares. He immediately rejected Glencore’s bid, stating that he is not about to be swallowed up. The shareholders must now vote to decide which route to take on April 26.

Glencore, one of the world’s largest commodities companies, is a global enterprise with a presence in over 50 countries and employs approximately 155,000 people. It is a leading integrated producer and marketer of resources and commodities such as zinc, copper, coal, cobalt, ferroalloys and iron ore.

Norman Keevil, Teck’s former chair, has been involved in many deals over the years and is recognized for his expertise in merger and acquisition work in the resource industry. He has placed his stamp on a wide range of organisations and currently serves as a director for the Business Council of Canada. Keevil has also been inducted into the Canadian Mining Hall of Fame for his dedication and leadership to the resources industry.