According to a report by Sky News, mining giant Rio Tinto RIO.L is studying a refreshed list of takeover targets that includes Canadian miner Teck Resources TECKb.TO. The report, citing unnamed sources, states that Rio has drawn up detailed proposals for a potential bid for Teck, which is valued at nearly 35 billion Canadian dollars ($25.71 billion).
However, a source close to Rio Tinto said that a bid for Teck is not imminent. Rio Tinto declined to comment on the report.
The news comes weeks after rival BHP BHP.AX walked away from its $49 billion plan to take over rival Anglo American AAL.L.
Teck recently sold its steelmaking coal unit to Swiss commodities trader Glencore in a deal worth about $6.9 billion. This move may have made Teck an attractive target for Rio Tinto, as it refocuses its business on copper, zinc, and other metals that are in high demand for the green energy transition.
While the report suggests that Rio Tinto is refreshing its list of potential takeover targets, including Teck Resources, a source close to the company has indicated that a bid for Teck is not currently imminent. The mining industry has seen some consolidation in recent years, and this potential move by Rio Tinto could be part of a broader strategy to expand its portfolio and strengthen its position in the global mining landscape.