JSW Steel plans to acquire 20% stake in Canada’s Teck Resources

17 Jul 2023 , 12:48 PM

JSW Steel is mulling an offer for the acquisition of up to 20% stake in Teck Resources’ steelmaking coal business in Canada, according to reports.

According to the sources, the Indian steelmaker is in talks with banks about potential financing for the acquisition, which may total over $2 billion. However, the discussions are still in the early stages, and factors such as pricing and timing could change.

Nippon Steel of Japan and Glencore of Switzerland had previously expressed interest in the Canadian miner’s coal unit. Nippon was interested in acquiring a stake, while Glencore offered to buy the company as a whole.

Teck revealed last month that it received numerous proposals for its coal business. The company is considering splitting off from its copper and zinc arm. In late April, the strategy failed to get enough shareholder backing.

At around 12.40 PM, JSW Steel was trading 0.30% lower at Rs 802.05, against the previous close of Rs 804.85 on NSE.

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