Ottawa mum on hostile bid to take over Teck Resources after minister meets with company

Canada's industry minister talked of the significance of Teck Resources Ltd. Friday while stopping short of a commitment to halt a hostile takeover of the company.

"Our message has been very clear that we like Teck as a Canadian company," said Francois-Philippe Champagne at a news conference in Montreal.

"But as you appreciate, as the regulator under the Investment Canada Act, that's as much as I can say for the time being."

His comments come after a tumultuous week that saw Teck Resources Ltd. pull its restructuring plan at the last hour while mining giant Glencore pursues a takeover bid.

Vancouver-based Teck cancelled a Wednesday shareholder vote on its plan to split into a metal and a coal company and said it is still opposed to any deal with Glencore, adding that it remains committed to its own plan to become two companies.

The plan to split the company was itself controversial in light of Teck's long history of environmental violations for polluting waterways with selenium, with environmentalists worried the spinoff is a way for the company to duck responsibility.

Opposition expresses concern over loss of mining assets

Glencore, meanwhile, said Thursday that it is still interested in discussing a deal with Teck's board of directors, but it is willing to take its takeover offer directly from the company's shareholders if necessary.

The failure of Teck's restructuring plan has kept the door open for Glencore's proposal, which has also created heightened political interest, including calls from the federal Conservatives for the government to block any attempt by the Swiss company to acquire Teck.

Kootenay‒Columbia MP Rob Morrison says he's concerned Canada will lose Teck's assets in the Kootenay region should Glencore's "hostile takeover" be successful.

"Whether it be critical mineral or metallurgical coal, in this case, the met [metallurgical] coal in Elk Valley is, in my mind, should be a critical mineral," Morrison told host Chris Walker on CBC's Daybreak South. "It uses the highest-grade coal that's used for steel."

"We want to control our destiny — by controlling our critical minerals in mining and controlling met coal, then we have an opportunity to do what we need to do to produce the products that we have to produce."

On Monday, federal ministers wrote in a letter to the Greater Vancouver Board of Trade, saying Ottawa is watching the situation "very closely" and that "we need companies like Teck here in Canada."

A potential takeover by Glencore would be subject to both a net-benefit review and a national-security review by the federal government, and some observers have pointed out Glencore's pursuit of the Canadian company comes at the same time that the government has committed to a national critical minerals strategy as part of its overall climate plan.

The timing of any future Teck restructuring proposal remains unclear, as does Glencore's next move.

While much remains unknown, what does seem clear is that shareholders are benefiting from the competing plans as shares have been trading around all-time highs in the past two weeks.