Teck takeover bid prompts debate over government’s role in future of Canadian mining
BNN Bloomberg
As the battle for the future of Teck Resources heats up, so has debate over whether the mining company should remain in Canadian hands, and whether the federal government should ultimately get involved to keep it there.
Glencore Plc told shareholders in Canada’s largest diversified miner that it would sweeten its US$23 billion takeover bid – but only if they vote to reject Teck’s plans to split its base metals and coal businesses at an upcoming April 26 meeting.
Teck, meanwhile, has rejected Swiss-based Glencore’s bid, but hasn’t ruled out an eventual sale to another company after the proposed spinoff. Both companies have been making their respective cases to shareholders in recent weeks as the vote approaches.
Eric Jackson, founder and president of EMJ Capital, said he considers it important for the major miner to remain under Canadian ownership, particularly at the beginning of a boom for minerals like copper used in electrification efforts.
