JSW Steel eyes majority stake in Teck coal unit

JSW Steel is considering the formation of a consortium to make a bid for a majority stake in Teck Resources steelmaking coal business. This move could potentially challenge an $ 8 billion offer presented by the commodities giant Glencore Plc. Mumbai-based JSW is in search of partners to join them in making an offer to acquire a 75% stake in the asset known as Elk Valley Resources. This marks a notable change in approach compared to July when JSW's interest was acquiring up to 20% of Teck's coal business. A potential deal might set the value of the coal business at over $ 8 billion. JSW has reportedly been engaging with banks to explore financing options for a prospective offer. However, these discussions are still ongoing, and there is no assurance that an agreement will ultimately be reached. It is possible that any consortium established by JSW may encounter competition for the coal asset from Glencore. Glencore had previously proposed an $8 billion purchase of the business in June as an alternative to a complete takeover of Teck, a mining company based in Vancouver. Around the same time, Teck revealed that it had received several indications of interest in its coal operations, though the parties interested were not named. In February, Japan's Nippon Steel Corp. had agreed to take a stake in a separate entity called Elk Valley Resources. However, Teck later abandoned the plan to split its coal and metals businesses. In the preceding month, Glencore demonstrated its sustained interest in the deal by reserving $ 2 billion for a potential acquisition of the Canadian miner's coal business. This amount was initially intended to be returned to shareholders. Also read:  Bahrain Steel partners with Essar Group for Green Steel InitiativeCM Gehlot approves Rs 246.81 bn investment boost for Rajasthan's growth