JSW Steel is considering buying a stake in Teck's coal division
Indian steel maker JSW Steel is considering acquiring up to a 20% stake in Canadian steelmaker Teck Resources, Bloomberg News reported Saturday, citing people with knowledge of the matter.
The Indian steelmaker is in talks with banks about possible funding for the acquisition, which could be around $2 billion, the report said, adding that discussions are at an early stage and details such as price and timing may change.
In the past, Japanese steelmaker Nippon Steel and Swiss trading and mining company Glencore have also shown interest in the Canadian mine's coal division. Nippon was interested in buying the stake, while Glencore offered to buy the business as a separate entity.
Last month, Teck confirmed it was partnering with Glencore on a coal proposal in which Glencore offered to split the coal divisions of both companies. Glencore mines and sells thermal coal, fossil fuels used to generate electricity, and a small amount of coking coal for steel production.
Teck, before confirming Glencore's offer, said it had received several offers for its coal business as it reworks a plan to spin it off from its copper and zinc division. The plan did not receive sufficient shareholder support at the end of April.
Reuters reported in May that Canadian mining entrepreneur Pierre Lassonde was forming a consortium to buy a stake in Teck's coal business.