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November 15, 2023
As Glencore prepares for the long grind to convince Canada of the virtues of the Swiss trader-led consortium’s $9 billion bid for Teck Resources’ coal unit, investors and lawyers are optimistic about the deal approval despite the government’s increased scrutiny of foreign investments.
In recent years, Canada has tightened the Investment Canada Act (ICA), the main tool the government uses to review inbound deals to ensure transactions are not harmful to national security.
Glencore CEO Gary Nagle’s initial bid for the entire Teck Resources faced stiff opposition from Justin Trudeau’s Liberal government and from the premier of British Columbia, where the company is based. Teck twice rebuffed Glencore’s overtures.
On Tuesday, the federal innovation ministry declined to specifically comment on Glencore’s bid, citing confidentiality provisions of the Act, but said any transaction involving a Canadian company and a foreign company would be subject to a review under the ICA.