Canadian mining entrepreneur offers to invest in Teck's coal unit (updated)

Lassonde Industries

09/05/2023 19:43

(Adds comments from Lassonde, background on Canadian
government's views on the deal)
    By Divya Rajagopal
       TORONTO, May 9 (Reuters) - Pierre Lassonde, a Canadian
mining industry veteran, has made an offer to invest in Teck
Resources Ltd's  TECKb.TO  coal business, in a bid to thwart
Glencore Plc's  GLEN.L  hostile attempt to merge with Teck.
    Vancouver-based Teck has rebuffed Swiss mining company
Glencore's $22.5 billon offer to combine the two companies and
is instead pursing plans to separate its copper and coal
business.
    Teck last month pulled its initial business separation plan
at the last minute after failing to secure enough shareholder
support. Lassonde said that a separation of the coal and copper
business can be done in different forms and does not necessarily
have to be a cash purchase.
    "We have put forward one model for this, they (Teck) said
they like what they see but we don't know what others have
offered," Lassonde told Reuters.
    Teck declined to comment.
    Glencore has offered a cash component for Teck's coal
business worth C$8 billion ($5.98 billion). When asked about how
the deal would be financed, Lassonde said there is no shortage
of billionaires in Canada, who would come together to ensure
that Teck remains a Canadian enterprise. 
        "There is no shortage of Canadian money to get the deal
done," Lassonde said.  
  
        Canadian government officials have said that Glencore's
proposed offer would go through tough scrutiny, and it has faced
opposition from some business lobby groups and opposition
Conservative leaders. Canada finance minister Chrystia Freeland
of the Liberal Party in April said that companies such as Teck 
    should remain in Canada.

 (Reporting by Divya Rajagopal in Toronto and Sourasis Bose in
Bengaluru; Editing by Denny Thomas, Sandra Maler and Mark
Porter)
 ((divya.rajagopal@thomsonreuters.com;))