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Mining

Glencore might face Indian rival for Teck's coal arm

Mumbai-based JSW Steel is talking to partners to put together an offer

Glencore PLC (LSE:GLEN) is facing competition in its attempts to merge with Canada’s Teck Resources with a rival bidder set to emerge for the Canadian firm’s coal arm, according to Bloomberg.

Mumbai-based JSW Steel is talking to partners to put together an offer for 75% of Teck's coal arm that will value the business at US$8 billion.

Glencore has been consistently rebuffed by Teck’s management and also major shareholder the Keevil family.

Teck had already tabled a scheme to see its coal division split off when Glencore made its initial approach.

The Switzerland-based group then tweaked its offer to include a US$8.2 billion cash element, a 24% stake in the merged metals businesses and a holding in the merged coal businesses of both companies.

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