Glencore is reportedly planning on increasing its offer for Teck Resources. 

The commodities giant is working on a potential improvement to its bid that could be announced as soon as the coming weeks, according to Bloomberg. By raising its offer and building shareholder pressure, Glencore is seeking to force Teck to the negotiating table. But with Norman Keevil, whose family controls Teck through its ownership of the company's 'A' class of shares, publicly stating that Glencore is not the right choice – Glencore’s increased offer may need to be substantial.   

In March 2023, Teck Resources rejected an unsolicited approach from Glencore to merge and simultaneously demerge their combined metals and coal businesses. The proposed transaction would create two standalone companies: MetalsCo a base metals business, and CoalCo a coal and carbon steel materials business. A follow-up proposal gave the Canadian miner’s shareholders the option to receive a cash component instead of exposure to the two companies’ coal mines.

In April, Teck’s board was forced into a reversal after failing to win enough investor support for a plan to split the company. Teck at the time reiterated its opposition to Glencore’s bid, while Glencore confirmed that it was willing to increase its offer. 

However, in early May, a consortium led by Canadian mining investor Pierre Lassonde announced plans to bid for Teck’s metallurgical coal operations, in a move that could thwart Glencore’s US$23Bn offer to purchase the entire company. It was also confirmed that Teck had been approached by Vale, Anglo American and Freeport-McMoRan amongst others to explore deals for its base metals business if it were to go ahead with a planned split.