(Vancouver) Canada’s industry minister hinted at the importance of Teck Resources on Friday, but made no commitment to end a takeover of the company.
“Our message was very clear, that we love Teck as a Canadian company,” François-Philippe Champagne said Friday at a press conference in Montreal.
“But as you know, as a regulator under the Investment Canada Act, that’s all I can say at this time. »
His comments come after a turbulent week that saw Teck Resources overturn a vote on its restructuring plan at the last minute, while mining giant Glencore continues its push to buy the company.
Vancouver-based Teck on Wednesday overturned a shareholder vote on its plan to split into two entities: one made up of its metallurgical assets and the other made up of its steelmaking coal assets. She further reiterated that she opposes any deal with Glencore, adding that she remains committed to her own split plan.
Glencore, meanwhile, said on Thursday it still wanted to discuss a deal with Teck’s board, but was ready to submit its takeover bid directly to the company’s shareholders, if needed.
The failure of Teck’s restructuring plan has left the door open for Glencore’s proposal, which has also sparked heightened political interest, including calls from federal conservatives for the government to block any attempt by the Swiss company to acquire Teak.
Champagne’s comments on Friday echoed what he and other ministers wrote in a letter to the Greater Vancouver Board of Trade. In this missive dated April 24, three federal government ministers said they were following the situation “very closely” and said they “need companies like Teck here in Canada”.
A potential takeover by Glencore would be subject to both a net benefits review and a national security review by the federal government. Some observers have pointed out that Glencore’s efforts to target the Canadian company come at the same time as the government has pledged to put in place a national critical minerals strategy as part of its comprehensive climate plan.
The timing of any potential Teck restructuring proposal remains uncertain, as does Glencore’s next move.
Despite all the unknowns, it seems clear that shareholders are benefiting from competing projects, as Teck’s stock has traded near all-time highs over the past two weeks.
