Canadian Conservatives Want Glencore Takeover of Teck Blocked

The opposition leader’s announcement ups the pressure on Prime Minister Justin Trudeau to take a stand on the issue. His finance and natural resources ministers have said in recent weeks that the government is watching the deal closely.

Teck is trying to fend off Glencore’s approach. But its plan to spin off its coal business suffered a major blow Wednesday when it withdrew the proposal for lack of support, hours before it was to be put to a shareholder vote.

Shares of Teck rose 1.3% on Thursday to C$62.13 at 2:25 p.m. in Toronto, extending its gain this year to more than 22%. Glencore closed the day down 1.7% in London.

The deal is quickly becoming a broader political issue.

British Columbia Premier David Eby opposes it. And in a letter Monday to Vancouver’s board of trade, Deputy Prime Minister Chrystia Freeland said the nation needs companies like Teck in Canada as it prepares for the future of mining critical minerals key to the energy transition.

Any takeover of Teck would require the approval of the government. After a review, which could be lengthy, the final decision would mostly likely fall to Industry Minister Francois-Philippe Champagne, who signed Freeland’s letter alongside Natural Resources Minister Jonathan Wilkinson.

Canada blocked BHP Group’s proposed takeover of Potash Corp. of Saskatchewan in 2010, when Stephen Harper was prime minister. Poilievre was a member of that government.