Trending: Glencore Buys Majority Stake in Rival's Coal Unit for $6.93 Billion

1330 GMT - Glencore is among the most mentioned companies across news items over the past 12 hours, according to Factiva data, after the Anglo-Swiss commodity miner bought a majority stake in the coal unit of Teck Resources. The deal--among this year's biggest in mining--values the steelmaking coal business, named Elk Valley Resources, at around $9 billion, as Glencore will pay $6.93 billion for a 77% stake. The world's biggest miner by revenue plans to spin off a combined coal company once it has sufficiently reduced its debt, which it expects to do up to two years after the transaction closes. "This is a striking move on the part of the diversified miner and commodities trader," AJ Bell investment director Russ Mould says in a market comment, adding the deal will do little for Glencore's public reputation, but clearly makes business sense. Japan-based steelmaker Nippon will hold a 20% stake after converting existing holdings in some of Teck's coal operations and paying cash, while South Korean steelmaker Posco will hold a 3% position after converting its holdings. Dow Jones & Co. owns Factiva. ([e-mail])

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November 14, 2023 08:45 ET (13:45 GMT)

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