JSW Eyeing Stake in Teck Resources' Coal Unit: Report

India’s JSW Steel is weighing a bid for up to a 20% stake in Vancouver, British Columbia-based Teck Resources’ steelmaking coal business, according to a report from Bloomberg News on Saturday.

JSW Steel is in talks with banks over potential financing for the acquisition, according to a Reuters article citing Bloomberg, which may total approximately $2 billion, with the article continuing that talks are still in an early stage and many details could change.

Recall that Teck turned down an unsolicited acquisition offer from Glencore in April of around $23 billion to buy the company. Later, in June, Glencore offered to buy the coal business as a standalone unit, according to a Reuters article, with another Reuters report saying Japan’s Nippon Steel had also shown interest in buying a stake in Teck’s coal segment.

JSW Steel USA, a unit of parent company JSW Steel, has two locations in the US in Mingo Junction, Ohio, and Baytown, Texas.

Spokespersons for Teck Resources and JSW Steel declined to comment for this story.

By Ethan Bernard, ethan@steelmarketupdate.com