Teck Held Talks With Vale Metals Unit Before Anglo Deal

(Bloomberg) — Teck Resources Ltd. held sporadic talks about merging with Vale SA’s base metals unit before agreeing to merge with Anglo American Plc, according to people familiar with the matter.

Teck disclosed on Monday that it was in simultaneous talks with an unidentified company (Party X) while negotiating with Anglo, according to materials sent to shareholders in support of its $40 billion deal with the London-based mining giant. The people, who wished to remain anonymous due to the discussion of confidential information, said that the unnamed suitor was Vale Base Metals.

Teck and Vale declined to comment. The Globe and Mail previously reported that Vale Base Metals was in talks with Teck.

Teck’s talks with Lot While Teck continued negotiations with Anglo, talks broke down last May and did not continue. The two companies announced a deal in September to bring copper, zinc and iron ore mines into a single metal-producing giant.

Mining companies have been in deal mode for the past two years; BHP Group Ltd. It was attempting an unsuccessful bid for Anglo in 2024, and Rio Tinto Plc was in talks to buy Glencore Plc. Teck’s talks with Anglo and Vale began shortly after the firm turned down an unsolicited $23 billion offer from Glencore. Bloomberg reported last year that Toronto-based Vale Base Metals was working on a potential deal with Teck.

Teck’s portfolio of copper assets has long been coveted by major mining firms, with its flagship asset being the giant Quebrada Blanca copper mine operating in Chile. It neighbors Collahuasi, one of the world’s largest copper mines, owned by Anglo and Glencore.

Teck and Anglo have set a December 9 meeting date for shareholders to vote on the merger.

(Added Anglo Teck shareholder vote date in last paragraph.)

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