Teck closes sale of minority stakes in coal business to Nippon, Posco
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Teck Resources Ltd. says it has closed its previously announced deal to sell minority interests in its steelmaking coal business to Japan's Nippon Steel Corp. and South Korean steelmaker Posco.
The deal sees Nippon Steel acquire a 20 per cent stake in Teck's coal business, known as Elk Valley Resources, in exchange for its prior 2.5 per cent interest in one of Teck's coal operations and US$1.7 billion in cash.
Posco swapped its interest in a pair of Teck's coal operations for a three per cent stake in the overall steelmaking coal operation.
The transactions are part of a broader deal announced by the Vancouver-based miner in November that will also see international giant Glencore pay US$6.9 billion for a 77 per cent stake in the company's coal business.
