Mining giant Rio Tinto is reportedly considering a major takeover bid after BHP’s attempt to acquire Anglo American fell apart. According to sources, Rio has identified Teck Resources, a Canadian mining group, as one of the potential targets for its acquisition strategy.
It is believed that Rio has prepared a detailed proposal for a potential bid for Teck, including discussions with banks for financing. Teck Resources is estimated to be valued at over $30 billion in any credible offer, potentially reaching $32 billion.
However, it remains uncertain whether Rio will proceed with a formal bid for Teck. A source close to the company stated that while Teck is on the list of potential targets, there are no immediate plans for an imminent bid.
Teck’s recent sale of its coal division to Glencore for nearly $7 billion has made it a pureplay miner focused on copper and other metals crucial for the energy transition. This has attracted the interest of other global mining companies, although any foreign bid for Teck would face strict scrutiny and potential conditions from the Canadian government.
According to a mining banker, the chances of a successful overseas bid for Teck are slim. The collapse of BHP’s attempt to acquire Anglo American in May has renewed investors’ attention to potential megadeals in the mining industry.
Amidst speculations, both Rio Tinto and Teck Resources have declined to comment on any rumors or speculations. The mining industry continues to be a subject of interest for major global players, and the possibility of significant mergers and acquisitions remains on the horizon.
