India’s leading steel producer JSW Steel Ltd is mulling a bid for as much as a 20 percent stake in Canada’s Teck Resources Ltd.’s steelmaking coal business, reported Bloomberg on 15 July citing sources.
According to the report, JSW has expressed preliminary interest and is also in discussions with banks over potential financing for the acquisition that may total about $2 billion.
Though the deliberations are at an early stage, details such as price and timing could change, said the source.
Live Mint could not independently confirm this report.
In the meantime, Canada’s largest diversified mining company Teck Resources Limited had planned to carve out its coal business. However, was forced back to the drawing board following canceling a shareholder vote on a spinoff in late April due to lack of support.
Rival Glencore Plc subsequently proposed buying the unit for cash, which Teck confirmed saying it was engaging with Glencore on the preliminary, nonbinding proposal, among others.
Meanwhile, Teck rejected Glencore’s unsolicited $23 billion takeover bid and said its offer remains on the table.
JSW Q1 FY2023-24 Report:
JSW Steel posted an 11 per cent year-on-year growth in consolidated steel production at 6.43 MT during the first quarter of the financial year. It had produced 5.77 million tonnes (MT) steel during the April-June period of the preceding 2021-22 fiscal, JSW Steel said in a statement.
JSW Ispat also reported its production volume, which stood at 1.84 lakh tonnes with a growth of 74 per cent year-on-year in the June quarter. The volume also rose one per cent on a quarter-on-quarter basis.