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Teck Resources (NYSE:TECK) is advanced discussions to sell its coal business to Glencore (OTCPK:GLCNF).
The deal may value the coal business at close to $10 billion and may announced as soon as this week, according to a WSJ report on Monday, which people familiar with the matter.
Teck (TECK) has been weighing a potential sale of the coal business as part of a comprehensive business review, as it tried to fend off a $23 billion takeover offer from Glencore earlier this year.
Teck (TECK) CEO Jonathan Price said last month that the company had received multiple suggestions from investors on how to separate its coal and metals businesses, and he was hoping to make a decision on the split by year-end.
Glencore approached Teck Resources (TECK) about buying its coal assets, providing an alternative to Glencore’s (OTCPK:GLCNF) original proposal for a full-blown merger of the two companies, the WSJ reported in June. Teck Resources confirmed the approach at the time.
Teck Resources (TECK) had planned to split the company’s coal and metals business into two separate entities but an April vote on split was cancelled amid shareholder pressure from Teck and Glencore shareolders after Teck Resources rejected Glencore’s $23 billion approach for the entire company.
