(Bloomberg) — Teck Resources Ltd. held on-and-off talks about a combination with Vale SA’s base metals unit before agreeing to merge with Anglo American Plc, according to people familiar with the matter.
Teck disclosed Monday that it had simultaneous discussions with an unidentified company — “Party X” — while negotiating with Anglo, according to materials sent to shareholders to support its $40 billion deal with the London-based mining giant. The unnamed suitor was Vale Base Metals, say the people, who asked not to be named due to discussing confidential information.
Teck and Vale declined to comment. The Globe and Mail earlier reported that Vale Base Metals held talks with Teck.
Teck’s discussions with Party X began in May 2023, but stalled repeatedly for a range of reasons, including disagreements over valuation and “governance considerations,” according to its Nov. 10 filing. The talks broke down last May and didn’t continue, while Teck pressed ahead on negotiations with Anglo. The two companies announced a transaction in September to bring a suite of copper, zinc and iron ore mines into one metals-producing giant.
Mining companies have been in deal mode during the last two years, with BHP Group Ltd. attempting an unsuccessful bid for Anglo in 2024 and Rio Tinto Plc holding talks to buy Glencore Plc. Teck’s discussions with Anglo and Vale began not long after the firm rebuffed an unsolicited, $23 billion offer from Glencore. Bloomberg reported last year that Vale Base Metals, based in Toronto, had studied a potential deal with Teck.
Teck’s portfolio of copper assets has long been coveted by major mining firms, with its flagship asset — the giant Quebrada Blanca copper mine — operating in Chile. It neighbors Collahuasi, one of the world’s top copper mines, which is owned by Anglo and Glencore.
Teck and Anglo have each set a Dec. 9 meeting date for shareholders to vote on the combination.
(Adds date for Anglo Teck shareholder vote in last paragraph.)
More stories like this are available on bloomberg.com
