A mining analyst says an apparent effort by industry veteran Pierre Lassonde to buy Teck Resources’ coal business could disrupt Glencore’s push to take over the Canadian firm.
National Bank analyst Shane Nagle says the effort by a consortium led Lassonde, as reported in the Globe and Mail, could greatly reduce regulatory uncertainty for Teck and may thwart Glencore’s attempt to acquire Teck’s portfolio.
Nagle says in a note that Lassonde, co-founder and chair emeritus of Franco-Nevada Corp., has long been a critic of foreign takeovers of Canadian mining companies and has previously supported Teck’s planned coal spinout.
Teck has been pushing back against efforts by Glencore to take over the company, but the future of the Vancouver-based company is unclear after it was forced to abandon its own restructuring plan in late April when it didn’t secure enough shareholder support.
The federal government has emphasized the importance of Teck with Prime Minister Trudeau noting any proposed deal from Glencore would face a “rigorous” review, while Industry Minister François-Philippe Champagne has said the government likes Teck as a Canadian company.
Teck said in a statement that it does not comment on market rumours or speculation. Lassonde could not be reached for comment.
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