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Conservatives oppose potential Teck Resources takeover by Glencore

Glencore bids are not in the best interests of Canada, says Tory opposition critic for industry
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Kootenay-Columbia MP Rob Morrison speaks at the podium, flanked by South Shoresa国际传媒擲t. Margarets MP Rick Perkins and Foothills MP John Barlow during an announcement in Cranbrook on Thursday, April 27. Trevor Crawley photo.

A trio of Conservative MPs called on Prime Minister Justin Trudeau and the federal government to be more responsive to attempts by Swiss-based Glencore to take over Canadian mining giant Teck Resources Ltd. through a shareholder deal.

Kootenay-Columbia MP Rob Morrison was joined by Rick Perkins, MP for South Shoresa国际传媒擲t. Margarets and opposition critic for innovation, science and industry, and Foothills MP John Barlow, along with Elkford mayor Steve Fairbairn.

All were united in opposition to Glencoresa国际传媒檚 attempts to purchase Teck Resources Ltd. through a pair of proposed shareholder bids that have played out publicly in recent weeks.

sa国际传媒淐onservatives believe that Glencoresa国际传媒檚 proposals in itsa国际传媒檚 two takeover bids for Teck Resources are not in the best interests of Canada and do not meet environmental and ethical standards we expect,sa国际传媒 said Perkins. sa国际传媒淐onservatives oppose Glencoresa国际传媒檚 attempt to acquire Teck Resources and call on the Liberals to ensure their proposal is rejected.sa国际传媒

The Conservartive opposition was backed by leader Pierre Poilievre, who said he would use the Investment Canada Act to stop the sa国际传媒渉ostile foreign takeoversa国际传媒 of Teck Resources Ltd. by Glencore.

In response to a Black Press media inquiry, the Office of the Prime Minister forwarded recent correspondence to the Vancouver Board of Trade, noting the federal government is following the Teck Resources Ltd. situation sa国际传媒渧ery closely.sa国际传媒

The letter was jointly signed by Liberal cabinet ministers Chrystia Freeland, Fran莽ois-Philippe Champagne and Jonathan Wilkinson.

sa国际传媒淭he mining of critical minerals is key to the future and only companies that make serious commitments to ESG and strong partnerships with Indigenous Peoples will succeed,sa国际传媒 reads the letter. sa国际传媒淲e need companies like Teck here in Canada companies with a strong commitment to Canada.sa国际传媒

The Conservative Party announcement was held at Fiorentino Bros. Contracting Ltd. in Cranbrook, a local business that is heavily utilized by Teck Resources Ltd. throughout the region.

Earlier this week, Teck Resources Ltd. withdrew a separation proposal where shareholders were asked to consider a plan to spin off the coal operations into a new company, Elk Valley Resources.

Glencore publicly announced its first bid for Teck Resources Ltd. shareholders in early April, and updated the offer just over a week later. Glencore says its latest offer still stands, which includes an $8.2 billion cash offer to shareholders, as well as a 24 per cent stake in a metals company that would be formed if the bid was successful.

In a news release, Teck criticized Glencoresa国际传媒檚 proposal by noting it carries risks of substantial tax impacts, and execution risks requiring extensive regulatory approvals that would not close for up to two years, if ever.

Perkins specifically noted that there are regulatory tools the federal government can employ whenever a company valued at $1.3 billion or more is taken over by a foreign corporation.

It is under ministerial discretion to review the sa国际传媒渘et-benefitsa国际传媒 to Canada, as well as national security implications, both elements of which are at stake with the Glencore bid, according to Perkins.

Morrison, Barlow and Fairbairn spoke about the local impact of Tecksa国际传媒檚 four metallurgical (steel-making) coal mines in the Elk Valley, particularly through thousands of direct and indirect jobs in southeastern B.C. and southern Alberta.

Teck was also hailed for financially supporting community issues and infrastructure, while the companysa国际传媒檚 environmental record was also noted, in spite of ongoing water quality issues in the Elk Valley.

sa国际传媒淭his hostile takeover has to be more than just a market play and stock value,sa国际传媒 said Fairbairn. sa国际传媒淭his is an issue of Canadian sovereignty, this is an issue of economic stability in the southeast corner of British Columbia and the southwest corner of Alberta. Itsa国际传媒檚 an issue of environmental stewardship of our own backyard.sa国际传媒

Morrison also noted Glencoresa国际传媒檚 bid could potentially impact Tecksa国际传媒檚 Trail operations, which is one of the worldsa国际传媒檚 largest fully integrated zinc and lead smelting and refining operations.

sa国际传媒淎ll BC communities have an interest in mining, all of them. We are a mining province and itsa国际传媒檚 really important we stay focused on that,sa国际传媒 Morrison said.



Trevor Crawley

About the Author: Trevor Crawley

Trevor Crawley has been a reporter with the Cranbrook Townsman and Black Press in various roles since 2011.
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