Glencore (LON: GLEN) is far from giving up on its plan to take over Teck Resources (TSX: TECK.A, TECK.B) (NYSE: TECK) as it its bid for Canada鈥檚 largest diversified miner聽still stands.
The Swiss mining聽giant and commodities trader, which does not typically takes 鈥渘o鈥� for an answer, implied that Teck鈥檚 decision to withdraw its proposal to split up into two companies backed its own plans.
The Vancouver-based miner scrapped on Wednesday its plan to split into two just ahead of a key shareholder vote, as Glencore circled with a $23 billion offer made in March and the promise of a sweeter one.
Teck, which could not convince the majority of its investors to back the plan to separate its聽copper聽and聽coal聽businesses, said its board will work on providing a 鈥渟impler and more direct separation plan鈥�.
The move is considered as a key win for Glencore, which had been campaigning to persuade Teck鈥檚 shareholders to vote against the split, and instead accept its聽unsolicited bid.
Glencore has framed the failed vote as a mandate to begin talks on its offer, noting on Thursday that its owns proposal provided Teck shareholders with a 鈥渃lean separation鈥� for its coal business, while also creating significant additional value for its shareholders.
The firm added that it was willing to engage with Teck鈥檚 board to improve its proposal structure, but would still make an offer directly to shareholders if there was no response.
鈥淣ow that Teck鈥檚 grand plan to reinvent itself has crashed and burned, Glencore will certainly make a third attempt, this time at a higher price that Teck鈥檚 Class B shareholders, who control most of the equity but few of the votes, may find irresistible,鈥� The Globe and Mail European Bureau chief, Eric Reguly, wrote in on Wednesday.
Glencore, which plans to acquire Teck and then split itself into two companies 鈥斅� metals and coal 鈥� appealed to the Canadian public by saying that its own metals unit would have 鈥渟ignificant critical minerals and recycling operations in Canada, managed from Canada.鈥�
The country鈥檚 deputy prime minister,聽Chrystia Freeland, said on Monday that Teck should remain headquartered in Canada, providing the clearest indication to date that the government was closely watching the takeover battle.