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Glencore has added $US8.2 billion in cash to its initial $US23 billion takeover offer for Canadian miner Teck Resources.  

While Teck’s board members have doggedly crossed their arms and rejected Glencore’s offers, time will tell if the sweetened deal will be enough to convince shareholders by an April 26 deadline. 

Teck turned down the initial offer earlier this month, citing a reluctance to expose its shareholders to Glencore’s oil and thermal coal assets in light of the global push for net-zero, as well as jurisdictional risk. 

“All of which would negatively impact the value potential of Teck’s business, is contrary to our ESG (environmental, social and governance) commitments and would transfer significant value to Glencore at the expense of Teck shareholders,” Teck said in a statement.   

Glencore hit back yesterday, adding an $US8.2 billion cash component to its offer in an effort to appease shareholders who are eager to steer clear of coal.  

“Glencore has proposed … to introduce a cash element to the proposal … to effectively buy Teck shareholders out of their coal exposure such that Teck shareholders would receive 24 per cent of MetalsCo and $US8.2 billion in cash,” Glencore said in a statement.  

Through the merger, Glencore is seeking to simultaneously spin off two combined thermal and steelmaking coal businesses into stand-alone companies. 

MetalsCo would become a world-class base metals business with a diversified portfolio. 

CoalCo – the other proposed spinoff – would be a highly lucrative coal and carbon steel materials business. 

But Teck is already in the process of splitting its own businesses down the middle. The Canadian company is poised to spin off its steelmaking coal as Elk Valley Resources, while the main body rebrands to Teck Metals. 

The vote to split Teck is slated for April 26 which, if passed, will slam the door on Glencore’s proposal and complicate future takeovers.  

It looks to be an uphill battle for Glencore.  

Teck’s controlling shareholder Norman Keevil told Canada’s The Globe and Mail that he will not sell to a foreign company at any price, while another Canadian mining magnate, Pierre Lassonde, has indicated his intention to purchase a 20 per cent stake in Elk Valley Resources to protect it from takeover in its vulnerable early days of trading.