Canada’s Teck Resources has rejected Switzerland-based Glencore’s updated $23B merger offer, saying that its plan to split into two separate companies is in the best interest of its shareholders.

 

Canada’s Teck Resources has rejected Switzerland-based Glencore’s updated $23B merger offer, saying that its plan to split into two separate companies is in the best interest of its shareholders.  Glencore is a multinational commodities company, and Teck is a mining and mineral development company. Last week, Glencore offered to merge with Teck and create two separate companies for their combined metals and coal businesses. Teck rejected the all-stock offer, noting it would expose its shareholders to Glencore’s large thermal coal business. On Tuesday, Glencore updated its offer to allow Teck shareholders a way to avoid exposure to its coal business. The updated offer would give Teck shareholders 24% of the combined metals company and $8.2B in cash. Glencore has said the merger would create one of the largest cobalt and copper businesses in the mining and mineral sector.