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JSW Steel forms consortium for Teck Resources' Coal Business
Steel

JSW Steel forms consortium for Teck Resources' Coal Business

JSW Steel, headquartered in Mumbai, is reportedly in the process of forming a consortium to submit a bid for a controlling stake in Teck Resources' steelmaking coal division. Individuals familiar with the situation have disclosed this information, suggesting that JSW's move could potentially rival a substantial $8 billion offer already made by commodities behemoth Glencore Plc.

The Indian company, JSW, is actively seeking partners to jointly present an offer to acquire a 75 per cent ownership stake in the specific asset, referred to as Elk Valley Resources. This represents a notable shift from their previous strategy in July, when reports from Bloomberg News indicated that JSW was exploring the possibility of acquiring up to 20 per cent of Teck's coal business.

Should the deal materialise, it could result in a valuation exceeding $8 billion for Teck's coal division. JSW has been in discussions with financial institutions regarding potential financing for their bid, though these discussions are on-going, and it's important to note that there's no guarantee that an agreement will ultimately be reached. The sources sharing this information preferred to remain anonymous due to the confidential nature of the details being discussed.

Both JSW and Teck have opted not to comment on the matter when approached by representatives. It's worth mentioning that any consortium led by JSW could potentially face competition from Glencore, which had proposed a purchase of Teck's coal business in June, offering approximately $8 billion as an alternative to a full acquisition of the Canadian company, based in Vancouver.

Around the same timeframe, Teck had acknowledged receiving various expressions of interest in their coal operations from undisclosed parties. Nippon Steel Corp. of Japan had initially agreed to acquire a share in a spun-off Elk Valley Resources back in February, but Teck later abandoned the plan to divide its coal and metals divisions.

In a recent development, Glencore has demonstrated its sustained interest in the deal by reserving $2 billion for the potential acquisition of the Canadian mining company's coal business. This move contrasts with their usual practice of returning such funds to shareholders.

JSW Steel, headquartered in Mumbai, is reportedly in the process of forming a consortium to submit a bid for a controlling stake in Teck Resources' steelmaking coal division. Individuals familiar with the situation have disclosed this information, suggesting that JSW's move could potentially rival a substantial $8 billion offer already made by commodities behemoth Glencore Plc.The Indian company, JSW, is actively seeking partners to jointly present an offer to acquire a 75 per cent ownership stake in the specific asset, referred to as Elk Valley Resources. This represents a notable shift from their previous strategy in July, when reports from Bloomberg News indicated that JSW was exploring the possibility of acquiring up to 20 per cent of Teck's coal business.Should the deal materialise, it could result in a valuation exceeding $8 billion for Teck's coal division. JSW has been in discussions with financial institutions regarding potential financing for their bid, though these discussions are on-going, and it's important to note that there's no guarantee that an agreement will ultimately be reached. The sources sharing this information preferred to remain anonymous due to the confidential nature of the details being discussed.Both JSW and Teck have opted not to comment on the matter when approached by representatives. It's worth mentioning that any consortium led by JSW could potentially face competition from Glencore, which had proposed a purchase of Teck's coal business in June, offering approximately $8 billion as an alternative to a full acquisition of the Canadian company, based in Vancouver.Around the same timeframe, Teck had acknowledged receiving various expressions of interest in their coal operations from undisclosed parties. Nippon Steel Corp. of Japan had initially agreed to acquire a share in a spun-off Elk Valley Resources back in February, but Teck later abandoned the plan to divide its coal and metals divisions.In a recent development, Glencore has demonstrated its sustained interest in the deal by reserving $2 billion for the potential acquisition of the Canadian mining company's coal business. This move contrasts with their usual practice of returning such funds to shareholders.

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