Teck Resources board of directors reject revised proposal from Glencore

Teck Resources (TECK) announced that its Board of Directors has reviewed and unanimously rejected a revised unsolicited acquisition proposal from Glencore (GLNCY), received on April 11, 2023, which would see that company acquire Teck. Consistent with its fiduciary duties and in consultation with its financial and legal advisors, Teck’s Board of Directors conducted a detailed review and assessment of the revised unsolicited proposal and, on the recommendation of the independent Special Committee of the Board, determined that the revised proposal is not in the best interests of Teck or its shareholders. The Teck Board and management team remain fully confident that Teck’s planned separation creates a greater spectrum of value enhancing opportunities for both Teck Metals and Elk Valley Resources. "Glencore recognizes that post-separation it would be exposed to significantly greater competition from other parties, which is why it is trying to frustrate Teck’s separation process," said Jonathan Price, CEO, Teck. "The fundamental flaws of Glencore’s revised proposal continue to make it a non-starter. It does not address major inherent risks including substantial regulatory hurdles, jurisdictional and ESG concerns, and diluting the base metals business with significant oil trading." Teck’s Board of Directors continues to unanimously recommend that shareholders approve the previously announced reorganization of Teck’s business and proposal to introduce a six-year sunset for the multiple voting rights attached to the Class A common shares of Teck, among other items of business, at the annual and special meeting of shareholders on April 26, 2023.