Teck’s mining breakup sets the scene for copper takeovers ' BHP , Rio Tinto and Glencore have been longtime admirers of Teck’s assets across the Americas'
Teck Resources' move to split its metals and coal operations is likely to attract the attention of some of the world’s biggest mining companies as the industry looks to consolidate amid the energy transition.
The Canadian company confirmed Tuesday that it plans a spinoff that will eventually see Teck split into two independent publicly listed companies: Teck Metals Corp will focus on minerals such as copper, and Elk Valley Resources, which will operate the metallurgical coal assets.The move almost certainly makes Teck Metals a takeover target when big mining companies are on the hunt for copper as demand for the wiring metal accelerates and a global shortfall looms.
Teck owns four copper mines in South America and Canada that produced 270 000 metric tons last year. The company expects to double copper output after the second phase of its Quebrada Blanca project in Chile ramps up to full capacity by the end of this year.
“Adding Teck Metals would position any major miner as a dominant player in base metals,” Citi analystin a Tuesday note. “That said, six years can be a long time in equity markets and a lot could change between now and then.”“M&A is not part of the core strategy for Teck Metals at this point in time,” CEO Moving away from the dual-class share structure is a “positive,” RBC Capital Markets analystsaid in a note.
Canada’s Keevil family, which has been involved with the firm for six decades, has long controlled Teck through majority ownership of Class A shares, which carry more voting control than the company’s Class B shares. Those Class A shares are the ones getting phased out. Until then, the Keevil family remains in control.
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