Not So Fast! Canada's Trudeau Signals Caution In Response To Takeover Bid Of Copper, Coal Miner Teck Resources

Zinger Key Points
  • Teck shareholders shot down a proposal for the company to separate its copper and coal mining businesses.
  • Canadian Prime Minster Trudeau said Friday any takeover would face scrutiny by the government.

As the merger, acquisition and takeover season in the mining industry continues to heat up, Canadian Prime Minister Justin Trudeau on Friday said Glencore, Plc’s hostile bid to takeover Teck Resources, Ltd TECK would face a “rigorous process” of approval, according to the Financial Post.

In an interview on Bloomberg Television, Trudeau said Glencore would have to abide by Canada’s takeover rules “so investors can know what they’re getting into” if the country’s government is asked for approval.

Also Read: Donald Trump 'Can Smell It': Shark Tank's Barbara Corcoran Discusses 'The Best Salesman' She's Ever Met In Her Life

The Backdrop

In an open letter to Teck shareholders, it was reported on April 19 that Glencore was willing to offer more than its original $22.5 billion takeover bid if Teck delayed its shareholder meeting or if Teck shareholders voted down the proposed Teck separation, which took place on April 26.

On Feb. 16, it was reported that Teck planned to separate its copper and coal mining business, which would potentially make it an attractive acquisition target, but shareholders voted against the spinoff Wednesday.

Copper is becoming a highly sought-after battery metal as EV companies, such as Ford Motor F and GM Motors Company GM, race to compete with Tesla, Inc TSLA in the electric vehicle space.

At the Prospectors and Developers Association Conference (PDAC) on March 5, keynote speaker Ken Hoffman said copper will see its value soar over the next decade, as the energy transition gains momentum.

Read Next: Tower Resources Announces Copper, Gold, Molybdenum Discovery That Rivals Teck Resources, New Gold

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Posted In: GovernmentM&ARegulationsCommoditiesMarketsCanadaJustin Trudeau
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