Barrick not interested in bidding for Teck’s copper assets

Barrick not interested in bidding for Teck’s copper assets

Barrick Gold Corp is not interested in bidding for the copper assets of Teck Resources Ltd as there are fewer synergies between the companies, CEO Mark Bristow said in an interview with Reuters.

Bristow’s comments come at a time when Canadian mining company Teck has rebuffed a $22.5 billion unsolicited bid from Swiss mining company Glencore Plc and said it is exploring its own simplified diversification that includes opening its metals and coal business to a competitive bidding process.

“We don’t think we bring any synergies to that party,” Bristow told Reuters, adding that even if Teck does a clean split of its copper and coal business, its debt is a problem.

“We would just have to take over the debt and we still get the assets that don’t bring synergies.”

Teck last month withdrew its plan to split its coal and metals business after it failed to receive shareholders’ approval. The company’s board rejected the offer from Glencore and said it will come up with a new simplified plan of separation.

Bristow said that Glencore’s proposal makes a “lot of sense” as Glencore can handle Teck’s debt and has offered a clean split of Teck’s business.

Glencore has offered to sweeten its offer to Teck and has said it will take its offer directly to shareholders if Teck’s board does not engage.

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