Glencore expects Teck's withdrawal of separation proposal to unlock value

Mining company Glencore applauded Canadian miner Teck's decision to withdraw its separation proposal on Thursday, stating that "a simple and direct approach to separation" would provide a better path to unlocking value for shareholders.

Glencore said on Thursday that its proposal provided Teck shareholders with "a clean separation" for its coal business, while also creating "significant additional value" in which investors would "fully and disproportionately share".

The FTSE 100-listed group confirmed that its proposal still stands and that it remains willing to engage with Teck in order to attempt to address issues raised by its board.

"We believe that with engagement, we could further improve our proposal's structure, terms and value, which would be in the best interests of all Teck shareholders," said Glencore.

"Glencore hopes that the Teck board will, against the backdrop of the feedback provided by its shareholders, engage constructively in order to fully explore our proposal which has not been done to date. Glencore remains willing to make an offer directly to Teck shareholders if there continues to be no engagement from the Teck board."

As of 0825 BST, Glencore shares were up 0.39% at 483.30p.

Reporting by Iain Gilbert at Sharecast.com