Glencore sweetens offer for Teck Resources

Acknowledging that certain Teck shareholders may prefer a full coal exit and others may not desire thermal coal exposure, Glencore said it would introduce a cash element to buy them out of their coal exposure. This would mean that Teck shareholders would receive 24% of MetalsCo - the combined metals-focused business - and $8.2bn in cash.

Last week, copper and zinc miner Teck said it had rejected an unsolicited $22.5bn offer from Glencore, dismissing it as "opportunistic". The offer that was on the table would have seen Teck separated to create two businesses, which would expose Teck shareholders to thermal coal and oil trading.

Chief executive Jonathan Price said at the time that proposal would expose Teck shareholders to a large thermal coal business, an oil trading business and "significant" jurisdictional risk, "all of which would negatively affect the potential of Teck’s business".

In February, Teck announced plans to separate its base metals and steelmaking coal businesses to create two, independent, publicly listed, resource companies.

Glencore said on Tuesday: "We continue to believe that the proposed transaction, being a merger and not a takeover, provides a compelling value proposition to Teck shareholders who will fully/disproportionately participate in the value creation, synergies and upside, and is a superior transaction to the proposed Teck separation."