Glencore pips JSW Steel in race to buy coking coal firm

New Delhi A consortium led by Swiss mining giant Glencore Plc has pipped India’s JSW Steel in the race to acquire the coking coal business of Canada’s Teck Resources Limited.

Glencore announced on Tuesday that it has signed an agreement with Tech Resources to acquire a 77 percent stake in the company’s steelmaking coal unit for $6.93 billion in cash.

Concurrently, Nippon Steel Corporation will acquire additional equity in Teck’s meteorological coal business unit, Elk Valley Resources (EVR).

South Korea’s POSCO will also take a 3 percent stake in Teck’s coal unit in exchange for its 2.5 percent interest in Elkview Operations and its 20 percent interest in the Greenhills joint venture, Glencore said in a statement.

The total value of the transaction which works out to $9 billion is expected to close in the third quarter of 2024. Sajjan Jindal-led JSW Steel had also expressed its interest in buying a stake in Teck’s unit and was hopeful of clinching a deal despite the souring of diplomatic relations between Indian and Canada after the killing of separatist Sikh leader Hardeep Singh Nijjar.