Teck Cominco to acquire Fording Coal

Canadian mining company Teck Cominco has agreed to purchase the assets of Fording Canadian Coal Trust for around $14 billion in cash and stock, according to a company announcement today.  ┬á Fording unitholders will receive $82.00 in cash and 0.245 of a Teck Class B subordinate voting share for each Fording unit they hold. Teck said it will raise $9.8 billion of the $12.4 billion cash requirement from a syndicate of banks, and issue 36.9 million new shares. ┬á┬á The acquisition gives Teck full ownership of the Elk Valley Coal Partnership, the worldÔÇÖs second largest producer of seaborne hard coking coal, with six operating mines in British Columbia and Alberta, which supply coke to steel mills mainly in Asia and Europe in addition to North and South America.┬á┬á Teck is currently the managing partner of Elk Valley Coal, owning a 52 percent effective interest through its 40 percent direct interest in the partnership and its 19.9 percent interest in Fording units.┬á┬á ÔÇ£This is a very important transaction for Teck, Fording and Elk Valley Coal,ÔÇØ said Teck CEO Don Lindsay. ÔÇ£Fording unitholders are receiving a significant premium to the Fording unit price during a time when comparable coal companies have declined substantially from their highs. In addition, our detailed knowledge of the assets and the coking coal markets means that the ownership transition and integration will be seamless."┬á┬á Read Teck ComincoÔÇÖs announcement in full here.  ┬á┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á