Teck has attracted the attention of many large companies because of its copper resources, and they all want to acquire Teck. Anglo-American Resources Group and Vale believe Teck is an appropriate merger target and are already considering the possibility of merging with Teck. Other large companies such as BHP Billiton, Rio Tinto Group, and Freeport McMoran are also closely monitoring Teck's movements. If other companies act first, these large companies may quickly follow suit.
Recently, the world's largest mining companies have begun to actively seek new big deals again. And Canada's Teck Resources became the focus of their attention.
The reason Teck is in the spotlight is that its copper assets are attractive. Teck chose to quit the coal business and just sold the coal business to Glencore to focus on other more promising mineral resources. Currently, Teck has a very valuable copper mine. The company's Quebrada Blanca 2 mine in Chile is one of the newest and largest copper mines in the world. Copper is important for the future green economy (such as electric vehicles and clean energy), so everyone wants more copper resources.
Anglo-American Resources Group and Vale are two potential merger partners, and the two companies are already investigating the possibility of collaborating with Teck internally. Larger mining companies such as BHP Billiton, Rio Tinto Group, and Freeport McMoRan are also closely watching Teck, and if other companies act first, these large companies may quickly follow suit. However, it is currently uncertain whether these companies will actually propose an acquisition of Teck.
Currently, Teck is still controlled by the founding family. This family successfully opposed Glencore's takeover proposal last year, so it is still unknown whether they are willing to sell the company. Furthermore, Canada has new regulations that restrict foreign companies from acquiring Canadian companies, which also raises doubts about whether the deal can be successfully reached.
Although it is currently unclear whether Teck's management or family head Norman Keevil is interested in making the deal, according to some sources, the company has at least privately considered the benefits of merging with competitors.
In the entire mining industry, many large mining companies still make money from coal and iron ore, but these are highly polluting resources. Investors want these companies to invest more in copper, which is a key metal needed for clean energy and a green economy in the future. By selling the coal business, Teck has focused on copper and zinc, which has made it more attractive.
On Thursday, the economic weather vane “Dr. Copper” closed up 18 US dollars to 9,122 US dollars/ton, ending an eight-day decline, breaking the lowest level in more than three months. It fell below 9,000 US dollars/ton during the day, for the first time since the beginning of April. On Friday, LME copper closed down $11 to $9111 per ton.
