Teck Cominco Ltd. July 29 said it has entered into an agreement with Fording Canadian Coal Trust in which Teck will acquire 100 percent of Fording's assets, which consist principally of a royalty in respect of Fording's 60 percent non-operating interest in the Elk Valley Coal Partnership. The deal is valued at US$14.1 billion.
Under terms of the transaction, Teck will pay about US$12.4 billion in cash and issue some 36.9 million Teck Class B subordinate voting shares in consideration for the Fording assets.
Elk Valley Coal is the world's second-largest producer of seaborne hard coking coal from its six operating mines in British Columbia and Alberta which it sells to steel mills in Asia, Europe, North and South America. Teck is the managing partner of Elk Valley Coal and owns a 52 percent effective interest in the partnership through its 40 percent direct interest in the partnership and its 19.9 percent interest in Fording.
