Glencore PLC (LSE:GLEN)’s plan to merge with Teck Resources Ltd (TSX:TECK.B) seemingly got a shot in the arm last night as the Canadian group dropped its own plans to split off its coal business.
In a statement, Glencore said it had noted Teck’s decision and that its own proposal for splitting off and merging the two companies' coal and metal businesses into separate entities offers “a simple and direct approach to separation”.
Teck dopped its separation proposal just an hour ahead of the scheduled shareholder vote amid reports that some weren’t happy with its refusal to discuss possible terms with Glencore.
London-listed Glencore, which has also already sweetened its original offer with a cash alternative to shares in the merged coal business, said it remained willing to talk to the Teck board and improve further its proposal's structure, terms and value.
If the Teck board does not engage, Glencore reiterated it is prepared to go hostile with its merger plan.
Shares in Glencore were flat at 480p.