Glencore Plc, led by South African executive Gary Nagle, has received final regulatory approval to acquire Teck Resources’ 77% stake in Elk Valley Resources (EVR).
This $6.9 billion purchase aligns with Glencore’s strategic focus on critical minerals needed for global energy transformation and infrastructure development.
Glencore’s acquisition of a 77% stake in Elk Valley Resources, which was approved under the Investment Canada Act, significantly increases its portfolio and position as a leading global miner of key minerals.
EVR’s high-quality steelmaking coal assets in British Columbia will help Glencore extend its supply capabilities as one of Canada’s leading diversified miners and suppliers of vital commodities.
Glencore CEO Gary Nagle expressed delight with the decision, stating, “We are pleased to have received final regulatory approval for the transaction and look forward to completing the acquisition and welcoming EVR into the Glencore Group.” Glencore’s Canadian assets are an important component of our worldwide business, with some dating back over a century.
Nagle clarified: “We have made significant commitments to the Canadian government aimed at ensuring the transaction is of lasting benefit to Canada and British Columbia, including in relation to employment, the environment, and engaging constructively and meaningfully with the Indigenous Nations in the Elk Valley.”
The acquisition, which will close on July 11, 2024, will allow EVR to acquire full control of the Elkview, Fording River, Greenhills, and Line Creek mines in Southeast British Columbia, as well as a 46 percent investment in Neptune Terminals in North Vancouver.
Glencore, founded in the 1970s as a trading business, is now a major power in the global commodities market. Glencore is one of the world’s largest mining corporations in terms of income, with a varied portfolio of over 60 commodities and over 430 listed entities in 50 countries. Gary Nagle, a South African business leader who succeeded billionaire Ivan Glasenberg as CEO in 2021, has played a key role in the group’s progress.
Aside from his managerial job, Nagle owns a 0.016 percent ownership (approximately 2 million shares) in Glencore worth more than $10 million. This ownership demonstrates his enormous influence outside of the boardroom and contributions to Glencore’s ongoing success.
Glencore’s acquisition spree continues under Gary Nagle’s leadership, and this transaction is expected to strengthen Glencore’s portfolio. The agreement includes obligations to increase employment, expand its ability to supply high-quality steelmaking coal to customers globally, and produce significant cash flows to assist global infrastructure and energy transition initiatives.
