Interbank | Announce it purchase of 77% of Elk Valley Resources (EVR), the steelmaking coal business of Teck Resources $6.93 billion.
This assumes a score for 100% out of 9,000 millions of dollars. Glencore would acquire 77% for $6.93 billion in cash, Nippon Steel Corporation 20% in exchange for 2.5% ownership of Elkview plus $1.3 billion in cash upon closing of the transaction and approximately $400 million in EVR cash flow. POSCO announced its intention to acquire the remaining 3%, through the exchange of its 2.5% in Elkview Operations and 20% of its JV in Greenhills. The transaction is expected to be completed around 3Q2024.
Opinion of the Bankinter analysis team:
Glencore attempted to acquire 100% of Canadian mining company Teck Resources earlier this year. Upon closing of the transaction, Teck will retain its copper and zinc operations. Glencore capitalizes 52,844MGBP (approximately 64,900 million dollars), therefore The operation would represent approximately 10% of its capitalization. EVR would have generated approximately 3.7 billion Canadian dollars (approximately $2.7 billion) through September 30, 2023 (7.4 billion Canadian dollars in 2022; approximately $5.4 billion). With this operation, Glencore completes its production of steelmaking coal in Australia, Colombia and South Africa. Glencore could consolidate its steelmaking coal operations into a leading company.
GLENCORE (430.45GBp Day variation +0.78%, Year variation -22.08%)
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