Rio Tinto evaluates takeover bids, including for Teck Resources, amid a surge in mining sector M&A
Rio Tinto Group is studying proposals for potential bids for companies, including Teck Resources Ltd., according to a report by Sky News.
The company has compiled a list of potential takeover targets following BHP Group’s unsuccessful bid for Anglo American Plc and has held discussions with bankers, the report stated. It remains unclear whether Rio Tinto will make an offer for Teck, with sources indicating that no bid is imminent.
Many industry experts anticipate a new wave of mergers and acquisitions in the mining sector following BHP’s bid.
However, significant deals between the world’s largest firms are likely to face stringent regulatory scrutiny, especially as western governments focus more on supply chains for critical minerals like copper.
Canada recently announced it would only approve foreign takeovers of its biggest miners “in the most exceptional of circumstances.”
This week, Teck closed the sale of its coal business to Glencore Plc, shifting its focus to copper and zinc production. The company is seen as an attractive takeover target, but any deal would require the support of its controlling shareholder, Norman Keevil.
Last year, Glencore attempted to purchase the entire company but was firmly rejected by both Teck and Keevil.
Rio Tinto spokespeople did not immediately respond to calls and emails seeking comment.
BNN Bloomberg cited the news but noted that Sky News did not identify its sources.
