Agnico CEO rules out Teck bid - report
Gold miner Agnico Eagle Mines is not considering a takeover bid for Teck Resources, CEO Ammar Al-Joundi has confirmed.
According to Bloomberg News, Al-Joundi told the Mining Forum Americas in Colorado Springs, Colorado, that the Canadian gold producer would concentrate on organic growth opportunities rather than pursuing large-scale acquisitions.
His comments follow media speculation about potential interest in Teck after the miner and Anglo American agreed to a $53-billion merger – one of the biggest in recent years.
In an interview with Bloomberg on the sidelines of the conference, Al-Joundi cautioned against what he termed “irresponsible M&A just because the gold price is high”. He stressed that transactions should deliver value on a per-share basis rather than simply boosting company size.
“Just with organic growth, we are going to add tremendous value per share,” Bloomberg quoted him as saying. “M&A should focus on per-share value increase, rather than just getting bigger,” he added.
Anglo and Teck announced their “merger of equals” last week, creating a new copper-focused global mining heavyweight. The tie-up comes just over a year after BHP scrapped a $49-billion bid for Anglo, following three rebuffed approaches.
The Anglo-Teck transaction is expected to take 12 to 18 months to clear regulatory approvals, leaving the door open for rival bids. Glencore and BHP have previously been cited as possible suitors, although BHP has recently signalled a preference for organic growth, focusing on a series of smaller copper projects rather than pursuing another mega deal.
Two years ago, Glencore proposed an unsolicited, $23-billion takeover of Teck. Having faced opposition from Canada, Glencore in the end only acquired Teck’s coal assets.
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