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A consortium led by Glencore has struck a $9bn deal to buy the coal business of Teck Resources, as the London-listed mining and trading giant doubles down on the fossil fuel.
Glencore will pay $6.9bn in cash for a 77 per cent stake in the business, the company said on Tuesday. Japan’s Nippon Steel and South Korea’s Posco will own the rest.
The acquisition comes just over six months after Glencore offered to buy the whole of Toronto-listed Teck, an approach that was rebuffed by the board of the Canadian company built by 85-year-old mining magnate Norman Keevil.
The decision to acquire Teck’s coal business may herald the break-up of Glencore. During its pursuit of Teck this year, Glencore had set out plans to eventually spin off the Canadian steelmaker’s coal business and its own unit into a separate company.