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Teck to sell majority stake in $8.9 bln coal business to Glencore – Globe & Mail

Teck Resources sign is on display during the company’s annual general meeting in Vancouver, British Columbia, Canada, April 22, 2010. REUTERS/Lyle Stafford/File Photo//File Photo Acquire Licensing Rights

Nov 13 (Reuters) – Canada’s Teck Resources (TECKb.TO) is planning to sell a majority stake in its steelmaking coal unit to Glencore Plc (GLEN.L), while Asian steelmakers Nippon Steel and POSCO will buy the rest in an overall $8.9 billion deal, the Globe & Mail reported on Monday.

Glencore will pay $6.9 billion for a 77% stake in Teck’s coal unit, while Japan’s Nippon Steel (5401.T) will pay $1.7 billion and swap its interest in one of Teck’s coal operations for 20% of the coal business, the report said, citing sources.

South Korea’s POSCO (005490.KS) will swap its interests in two of Teck’s coal operations for 3% of the business, the report said, adding that the deal could be…

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