On Tuesday, Teck Resources announced it would sell its coal assets to Glencore and two Asian steelmakers for $8.9 billion.
The deal still needs approval from regulators in Ottawa. According to the agreement, Glencore will acquire 77% of Tektronix's coal business Elk Valley Resources for US$6.9 billion, Japan's Nippon Steel will acquire 20%, and South Korea's Posco will acquire 3%.
The deal caps off negotiations since April, when Teck rejected an offer from Glencore to take over Canada's largest diversified miner.
"This sale will ensure Teck is well-funded to realize value from our metals business and deliver strong returns to shareholders while maintaining a strong balance sheet," said Teck President and CEO Jonathan Price.
The deal is expected to close in the third quarter of next year, and Teck will continue to operate its coal business until then.
