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Teck Resources nears deal to sell coal business to Glencore for about $10B – WSJ

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# Teck Resourcesโ€™ Potential $10 Billion Coal Business Sale to Glencore: A Detailed Insight

![Coal Worker With Handful Of Coal](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/96390221/image_96390221.jpg?io=getty-c-w750)
*Image Source: Monty Rakusen/Cultura via Getty Images*

Teck Resources (NYSE:TECK) is currently in advanced discussions to sell its coal business to Glencore (OTCPK:GLCNF), with the potential deal being valued at close to $10 billion. The announcement is expected to be made as soon as this week, according to a Wall Street Journal report sourced from individuals familiar with the matter.

The decision to potentially divest the coal business comes amidst Teck Resourcesโ€™ comprehensive business review, which was initiated as a response to a $23 billion takeover offer from Glencore earlier this year. The companyโ€™s CEO, Jonathan Price, had indicated last month that they had been considering various investor suggestions on separating the coal and metals businesses. A decision on this potential split is anticipated to be made by the end of the year.

Glencoreโ€™s interest in acquiring Teck Resourcesโ€™ coal assets emerged as an alternative to its initial proposal for a full-blown merger with the company, as reported by the WSJ in June. Teck Resources subsequently confirmed the approach at that time. The company had initially planned to divide its coal and metals businesses into separate entities; however, a scheduled vote in April on the split was cancelled due to shareholder pressure following the rejection of Glencoreโ€™s $23 billion offer for the entire company.

This potential $10 billion deal between Teck Resources and Glencore holds significant implications for both companies, as well as the broader landscape of the coal industry. As the discussions progress, it will be essential to closely monitor the developments and their potential impact on the market and stakeholders.

## Key Takeaways:
โ€“ Teck Resources (NYSE:TECK) is in advanced discussions to sell its coal business to Glencore (OTCPK:GLCNF) for approximately $10 billion.
โ€“ The decision stems from Teck Resourcesโ€™ comprehensive business review, initiated in response to Glencoreโ€™s $23 billion takeover offer earlier this year.
โ€“ Teck Resources had planned to separate its coal and metals businesses, with a decision on the potential split expected by the end of the year.
โ€“ Glencoreโ€™s interest in Teck Resourcesโ€™ coal assets emerged as an alternative to its initial proposal for a full-blown merger with the company.
โ€“ The potential deal is poised to influence the trajectory of the coal industry, warranting close observation of its implications.

The intertwining dynamics of this potential deal and the broader repercussions in the energy sector underscore the significance of this development. Stay tuned for further updates on this evolving narrative.

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