Teck Held Talks With Vale Metals Unit Before Anglo Deal

Core Insights - Teck Resources Ltd. has been in discussions regarding a potential merger with Vale SA's base metals unit before ultimately deciding to merge with Anglo American Plc [1][2] Group 1: Merger Discussions - Teck disclosed that it was in simultaneous discussions with an unidentified company, referred to as "Party X," while negotiating with Anglo American, which was later identified as Vale Base Metals [2] - Discussions with Vale Base Metals began in May 2023 but faced multiple stalls due to disagreements over valuation and governance considerations, ultimately breaking down in May [3] - Teck proceeded with negotiations with Anglo American, culminating in a transaction announced in September to consolidate a suite of copper, zinc, and iron ore mines [3] Group 2: Industry Context - The mining sector has seen increased merger and acquisition activity, with BHP Group Ltd. making an unsuccessful bid for Anglo in 2024 and Rio Tinto Plc exploring a purchase of Glencore Plc [4] - Teck's discussions with Anglo and Vale followed its rejection of a $23 billion unsolicited offer from Glencore [4] - Teck's copper assets, particularly the Quebrada Blanca mine in Chile, are highly sought after by major mining firms, with its proximity to Collahuasi, another top copper mine owned by Anglo and Glencore, adding to its appeal [5]