JSW Steel, a prominent steel producer, is reportedly contemplating a bid for a stake of up to 20% in Teck Resources' steelmaking coal business, as per sources cited by Bloomberg News. The Indian steelmaker is currently engaged in discussions with banks to explore potential financing avenues for the acquisition, with an estimated total investment of around $2 billion. However, it must be noted that these discussions are still in their nascent stages, and various aspects, including the price and timing, remain subject to potential changes.
Both JSW Steel and Teck Resources have refrained from immediately responding to requests for comment from Reuters, indicating a cautious approach to these reports.
Earlier, Japanese steel manufacturer Nippon Steel and Swiss trading and mining conglomerate Glencore had also expressed interest in Teck Resources' coal unit. Nippon Steel had shown an inclination towards acquiring a stake, while Glencore had made an offer to purchase the business as an independent entity.
In May, it was reported by Reuters that Canadian mining entrepreneur Mr. Pierre Lassonde was assembling a consortium to acquire a stake in Teck Resources' coal business, further highlighting the intrigue surrounding the sector.
Teck Resources had announced last month that it had received multiple proposals for its coal business, as the company reevaluated its strategy to separate it from its copper and zinc unit. However, the initial plan failed to garner sufficient shareholder support in late April.
Source: Steelguru
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