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Concerns grow over aggressive Teck takeover bid
The ongoing high finance drama stemming from Swiss multinational company Glencore seeking to takeover Teck Resources Ltd. in the midst of a corporate reorganization continues to evolve, with Teck standing firm and provincial and local politicians speaking out against it.
Teck today (April 19) issued a letter to shareholders “reaffirming the strong rationale for its pending separation and responding to Glencore’s latest attempt to frustrate value creation for Teck shareholders.
“Glencore’s opportunistic proposal hasn’t changed – same low value, same flawed structure, same material execution risks. Teck has previously engaged extensively with Glencore – for six months on essentially the same proposal – and repeatedly determined it is not in the best interest of Teck shareholders
“The choice for shareholders is clear: vote FOR Teck’s separation plan to create the world’s pre-eminent, pure-play base metals company with a greater array of value creating opportunities.”
BC United stated April 18 its MLAs are very concerned about the potential hostile takeover targeting Teck, a major Canadian critical minerals producer, and is pressing Premier David Eby to show support for jobs in the province.
“It threatens jobs and livelihoods across British Columbia, and BC United MLAs want to know what Premier Eby is doing to stand up for British Columbians and prevent the potential loss of this major employer and economic contributor,” the official opposition stated in a media release.
“The loss of Teck’s head office in Vancouver would have a ripple effect on many junior mining and tech operations throughout the city, and major impacts for workers in the Interior and in my region of the Kootenays,” said Kootenay East MLA Tom Shypitka, Shadow Minister for Mines.
“Just as he demonstrated a lack of leadership on the softwood lumber file, the Premier continues to show that he doesn’t know how to create or maintain a business-friendly environment that attracts and retains investment.
“British Columbia ought to be a national leader in mining and critical minerals, but while a critical minerals strategy has been adopted in Canada and in other provinces like Alberta, Saskatchewan, and Ontario, the NDP continue to drag their feet. The mining industry needs a champion — but judging from his silence and inaction, right now it’s not David Eby.”
Opposition House Leader Todd Stone, Shadow Minister for Jobs, Economic Development and Innovation added, “Teck is a homegrown B.C. success story, supporting nearly 9,000 direct employees in B.C. alone — yet the Premier has been completely silent on this very real threat that could impact those workers and B.C.’s economy, and have other detrimental spin-off effects.
“In budget estimates today, we posed direct questions to Jobs Minister Brenda Bailey, and we were disappointed to learn the NDP has not had recent conversations with the federal government on this emerging issue. David Eby should be putting pressure on Ottawa to use the tools at its disposal to protect B.C. jobs — but right now, we don’t have much faith that he’s actually going to bat for these workers.”
The District of Sparwood is also showing support for the largest employer in the Elk Valley.
“We have been following what Glencore has been trying to do prior to the April 26 vote for all Teck shareholders Teck “A” and Teck “B”. The letter is self-explanatory. It is important that the metallurgical coal mines within the Elk Valley remain a Canadian company.
“We are proud of the high-quality metallurgical coal that is produced out of the Elk Valley. Without this highly sought after mineral the world would not have most of the things we take for granted,” stated District of Sparwood Mayor David Wilks.
Mayor and council forwarded the following letter to Teck Resources April 18.
Teck investors will decide on the company’s restructuring plan on April 26.
If Glencore ends up acquiring Teck, the deal would be one of the world’s biggest-ever mining takeovers.
Glencore is a Swiss multinational commodity trading and mining company with headquarters in Baar, Switzerland. Glencore’s oil and gas head office is in London and its registered office is in Saint Helier, Jersey.
Read more about Teck’s current stance: Teck responds to Glencore’s latest attempt to frustrate value creation for Teck shareholders.
e-KNOW file photo
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