Canadian miner Teck considers sale, spinoff of $8 billion coal unit - Bloomberg News
Reuters
Published Sep 14, 2021 01:48PM ET
Updated Sep 14, 2021 02:16PM ET
(Reuters) -Teck Resources Ltd, is exploring options for its metallurgical coal business, including a sale or spinoff that could value the unit at as much as $8 billion, Bloomberg News reported on Tuesday, citing sources.
Large commodity producers have been facing investor pressure to shift away from fossil fuel business, including by shedding assets, amid a push to reduce carbon emission and halt climate change.
The company is working with an adviser as it looks for strategic alternatives for the unit, the report https://bloom.bg/3lhsrsY said.
Teck Resources (NYSE:TECK) declined to comment on the report.
The company's sales from its steelmaking coal unit was 6.2 million tonnes in the second quarter, a 24% jump from year earlier.
Steel prices has been rising since the second quarter, helped by higher demand for the metal as economies recover and demand picks up after being hit by the coronavirus pandemic.
The miner said in July that wildfires in British Columbia, Canada's westernmost province, disrupted rail services and this was likely to weigh on its steelmaking coal business unit for the third quarter.
U.S. listed shares of the miner were up as much as 6.4% at $26.17 in afternoon trading.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.