Glencore, Nippon Steel and POSCO Secure Major Deal in Steelmaking Coal Sector, Strengthening Global Partnerships in Key Sectors

In November, a consortium led by Glencore finalized one of the largest deals in the mining sector by acquiring Teck Resources’ steelmaking coal unit for $9 billion. Swiss miner Glencore will receive 77% of the business in a $6.9 billion cash transaction, while Japan’s Nippon Steel Corporation, which already has a 2.5% stake, will get 20%. South Korea’s POSCO will exchange a stake in two of Teck’s coal operations for 3% in the steelmaking coal business Elk Valley Resources.

Canada was evaluating the deal based on net benefit and national security considerations, according to a report. The minister’s office did not respond to a request for comment from Reuters. However, it is expected that the approval of the deal with conditions will move forward after the review by Canadian Industry Minister Francois-Philippe Champagne.

The deal marks a significant development in the mining sector and solidifies the positions of Glencore, Nippon Steel Corporation, and POSCO in the steelmaking coal business. This shows how global strategic partnerships can strengthen operations in key sectors. Overall, this deal highlights the importance of considering both economic benefits and national security concerns when making decisions related to international trade and investment.