Canada’s main opposition party called for the government to block Glencore Plc’s proposed takeover of Teck Resources Ltd.
(Bloomberg) — Canada’s main opposition party called for the government to block Glencore Plc’s proposed takeover of Teck Resources Ltd.
Thousands of jobs would be at risk if the Swiss commodities firm were to succeed in its unsolicited $23 billion bid for the Vancouver-based miner, Conservative Leader Pierre Poilievre said in a statement Thursday. He warned it would also mark the loss of Canada’s last remaining major diversified base-metals miner owned and headquartered in the country.
“Canada needs a government that is committed to creating and supporting Canadian jobs,” Poilievre said. “Glencore’s attempted hostile takeover will ship thousands of jobs out-of-country and threaten thousands more Canadians who work for Teck.”
The opposition leader’s announcement ups the pressure on Prime Minister Justin Trudeau to take a stand on the issue. His finance and natural resources ministers have said in recent weeks that the government is watching the deal closely.
Teck is trying to fend off Glencore’s approach. But its plan to spin off its coal business suffered a major blow Wednesday when it withdrew the proposal for lack of support, hours before it was to be put to a shareholder vote.
Shares of Teck rose 1.3% on Thursday to C$62.13 at 2:25 p.m. in Toronto, extending its gain this year to more than 22%. Glencore closed the day down 1.7% in London.
The deal is quickly becoming a broader political issue.
British Columbia Premier David Eby opposes it. And in a letter Monday to Vancouver’s board of trade, Deputy Prime Minister Chrystia Freeland said the nation needs companies like Teck in Canada as it prepares for the future of mining critical minerals key to the energy transition.
Any takeover of Teck would require the approval of the government. After a review, which could be lengthy, the final decision would mostly likely fall to Industry Minister Francois-Philippe Champagne, who signed Freeland’s letter alongside Natural Resources Minister Jonathan Wilkinson.
Canada blocked BHP Group’s proposed takeover of Potash Corp. of Saskatchewan in 2010, when Stephen Harper was prime minister. Poilievre was a member of that government.
–With assistance from Joe Deaux.
(Updates with shares, additional background)
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