Canadian Industry Minister Francois-Philippe Champagne has been reviewing a deal on both a net-benefit and national security basis. The Globe and Mail reported that Canada is planning to approve the deal with several legally binding conditions, although the minister’s office did not comment on the matter.
In November, a Glencore-led consortium finalized one of the mining sector’s largest deals by agreeing to acquire Teck Resources’ steelmaking coal unit for $9 billion. Swiss miner Glencore will acquire 77% of the business in a $6.9 billion cash deal, with Japan’s Nippon Steel Corporation holding 20% and South Korea’s POSCO holding 3% through a stake swap.
The deal has been under review by the Canadian government, with Minister Champagne assessing its impact on both the economy and national security. Despite the lack of official comment from the minister’s office, sources suggest that Canada is likely to approve the deal with certain conditions in place.
This acquisition represents a significant move in the mining industry, with a Swiss-led consortium taking the majority stake in Teck Resources’ steelmaking coal unit. The involvement of Japanese and South Korean companies in the deal also highlights the international nature of the transaction. As details continue to emerge, the impact of this acquisition on the Canadian mining sector remains to be seen.