Teck also plans to split its operations into copper steelmaking coal company. Credit: omid roshan on Unsplash.

Canadian mining company Teck Resources has rejected the acquisition bid from Swiss commodities giant Glencore, citing it as “unsolicited and opportunistic”.

Submitted on 26 March, Glencore’s proposal contemplated a merger with Teck and a subsequent demerger of their metals and coal businesses.

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Glencore made an all-stock offer to purchase Teck in which it offered 7.78 Glencore shares for each Class B subordinate voting share and 12.73 Glencore shares for each Class A common share of Teck.

The offer from Glencore reflects a 20% premium over Teck’s March 26 closing stock price.

Based on Bloomberg’s calculations, the deal would have been worth $23bn, based on last Friday’s closing price.

Teck declined the offer saying that it would expose its shareholders to a sizable thermal coal business, an oil trading industry, and a sizable jurisdictional risk.

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It added that this would contradict Teck’s ESG obligations, have a detrimental impact on the potential value of its business, and transfer significant value to Glencore at the expense of Teck shareholders.

Teck board chair Sheila Murray said: “The board is not contemplating a sale of the company at this time. We believe that our planned separation creates a greater spectrum of opportunities to maximise value for Teck shareholders.”

Earlier this year, Teck announced a business reorganisation that would see it split its operations to create a copper-focused company and pure-play steelmaking coal entity.

Shareholders are set to vote on the reorganisation plan on 26 April 2023.