In response to press reports, Glencore  confirms that it submitted a proposal to the Board of Directors of Teck Resources Limited  in which it offered to acquire Teck’s steelmaking coal business  for cash .

While Glencore remains willing to pursue its Proposed Merger Demerger, Glencore has made this alternative proposal to acquire EVR as it is expected to allow for a value accretive demerger of the combined coal and carbon steel materials businessto its shareholders. We also note continued strong support from shareholders for a transaction between Glencore and Teck.

If a transaction were to materialise, Glencore would demerge CoalCo, once Glencore has sufficiently delevered, which is expected approximately 12-24 months from close. Glencore would manage its post-demerger balance sheet, post servicing its formulaic base distribution, to a revised c.US$5 billion net debt cap, down from the current level of c.US$10 billion, alongside our continued commitment to minimum strong BBB/Baa ratings.

Glencore is fully committed to ensuring that the Proposed EVR Acquisition would benefit Canada and is open to working with Teck to identify a comprehensive suite of commitments for the benefit of all relevant stakeholders which would, amongst others, maintain and, where feasible, enhance EVR’s existing presence and capital investments in Canada as well as its community, social, labour and environmental programmes.

There is no certainty that any transaction will occur and further updates will be provided as necessary.