Glencore Gains Final Approval For Elk Valley Resources Acquisition

Glencore (LON: GLEN) said Friday that it has secured the final regulatory hurdle for its acquisition of a 77% stake in Elk Valley Resources (EVR) from Teck Resources.

With approval from the Canadian government under the Investment Canada Act (ICA), the deal is expected to close on July 11, 2024. In November 2023, Glencore announced it had entered into an agreement with Teck Resources Limited for the 77% stake in the entirety of Teck’s steelmaking coal business for $6.93 bn in cash. 

Glencore CEO Gary Nagle expressed his satisfaction with the final approval, highlighting the importance of EVR to Glencore’s Canadian presence. The acquisition strengthens Glencore’s position as a leading Canadian supplier of critical minerals, building upon its existing, century-long history in the country.

Nagle emphasized Glencore’s commitment to ensuring the deal benefits Canada and British Columbia. These commitments include maintaining employment levels, prioritizing environmental responsibility, and fostering positive relationships with Indigenous Nations in the Elk Valley.

By acquiring EVR, Glencore expands its portfolio in Canada and strengthens its ability to deliver high-quality steelmaking coal, a key material for the global transition to clean energy. The acquisition is also expected to generate significant cash flow for the Glencore Group.

Glencore shares rose by more than 1% at the start of Friday’s session. So far, in 2024, the company’s stock is up over 2%. It currently trades around the 488p per share mark.