(Bloomberg) — Rio Tinto Group is studying proposals for potential bids for companies including Teck Resources Ltd., Sky News reported, citing people it didn’t identify.
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The mining giant has drawn up a list of possible targets in the wake of BHP Group’s failed bid for Anglo American Plc, and has held talks with bankers, Sky said. It’s unclear whether Rio will choose to make a move on Teck, it said, also citing a person close to the company who said no offer was imminent.
Many in the industry expect a fresh wave of acquisitions following BHP’s bid, but mega deals between the biggest firms are likely to attract stiff regulatory scrutiny, particularly as Western governments sharpen their focus on supply chains for critical minerals such as copper. Last week, Canada said it would only approve foreign takeovers of its largest miners in “exceptional” circumstances.
Teck this week closed the sale of its coal business to Glencore Plc, leaving the company focused on copper and zinc mines. It’s viewed in the industry as an attractive takeover target, but any deal would need the support of controlling shareholder Norman Keevil. Glencore initially tried to buy all of Teck last year, but was strongly rejected by both the company and Keevil.
A spokesperson for Rio Tinto said it doesn’t comment on market rumors.
(Updates with response from Rio in final paragraph.)
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