JSW Steel

The company is negotiating with banks, the amount may be about $2 billion

Indian steelmaker JSW Steel is considering buying up to a 20% stake in Canadian steelmaking coal business Teck Resources. Bloomberg News informs about it with the reference to sources.

JSW Steel is in talks with banks to potentially finance the acquisition, which could be around $2 billion. Talks are at an early stage, so the price and other details could change.

Previously, the Japanese Nippon Steel and the Swiss trading and mining company Glencore also showed interest in the coal division of the Canadian miner. Nippon was interested in acquiring a stake, Glencore offered to buy the business as a separate entity.

In June 2023, Teck confirmed that it was considering an offer from Glencore, among a number of others. Glencore proposed to separate the coal divisions of both companies. The Swiss company mines and sells thermal coal, as well as smaller amounts of coking coal. Teck is working on a plan to separate its coal business from its copper and zinc division. The plan did not receive enough support among shareholders at the end of April 2023.

In the second quarter of 2023, sales of coking coal by Teck Resources, as the company reported, previously amounted to 6.2 million tons with a forecast of 6.2-6.6 million tons. The sale price in the specified period averaged $264/t.

As GMK Center reported earlier, in May 2023, JSW Steel announced that its American division, JSW Steel USA, plans to invest $145 million to modernize manufacturing operations at the Mingo Junction plant in Ohio. The projects are expected to be completed in the 2025/2026 financial year.