Glencore has added $US8.2 billion in cash to its initial $US23 billion takeover offer for Canadian miner Teck Resources.
Teck turned down the initial offer earlier this month, citing a reluctance to expose its shareholders to Glencore's oil and thermal coal assets in light of the global push for net-zero, as well as jurisdictional risk.
"All of which would negatively impact the value potential of Teck's business, is contrary to our ESG (environmental, social and governance) commitments and would transfer significant value to Glencore at the expense of Teck shareholders," Teck said in a statement.
Glencore hit back on April 11, adding an $US8.2 billion cash component to its offer in an effort to appease shareholders who are eager to steer clear of coal.
Through the merger, Glencore is seeking to simultaneously spin off two combined thermal and steelmaking coal businesses into stand-alone companies.
MetalsCo would become a world-class base metals business with a diversified portfolio.
CoalCo – the other proposed spinoff – would be a highly lucrative coal and carbon steel materials business.
But Teck is already in the middle of splitting off its own business. Teck plans to spin off its steelmaking coal as Elk Valley Resources, while the main body will rebrands to Teck Metals.
The vote to split Teck is slated for April 26 which, if passed, will slam the door on Glencore's proposal and complicate future takeovers.
(Writing by Rebecca Liu Editing by Harry Huo)
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