Rumours Say Glencore Will Raise Takeover Bid for Teck Resources, but Another Big Obstacle Lies Ahead

According to media reports citing sources, Glencore plans to increase its bid offer for Canadian mining company Teck Resources.

Previously, Glencore proposed to acquire Teck Resources for $23 billion, but was rejected by the latter. Glencore's initial proposal was an all-stock acquisition, but after being rejected, the terms were optimized and $8.2 billion in cash was provided without changing the offer. But that was still rejected by Teck Resources.

After both proposals were rejected, Glencore expressed its willingness to raise its offer, but there has been no public moves since mid-April.

People familiar with the matter also pointed out that even if Glencore’s offer is enough to impress Tektronix’s management and shareholders, it still faces a huge obstacle: Norman Keevil, Teck’s controlling shareholder and Canadian mining tycoon, has publicly and strongly opposed Glencore’s bid for Tektronix. Keevil has veto power over any major Tektronix decision.

As one of the world's largest coal mining and trading companies, Glencore is facing the pressure of carbon neutrality, but is unwilling to give up the coal business. Therefore, the company hopes to adjust its product structure through the acquisition of Tektronix.

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