Teck is seen as a logical merger partner in particular for Anglo American or Vale SA’s base-metals business, both of which have studied the specifics of a potential deal internally, according to executives, advisers and bankers familiar with the companies’ thinking. Larger rivals including BHP, Rio Tinto Group and Freeport-McMoRan Inc. are also watching Teck closely and could be in a position to respond if another player made the first move.
Teck shares rose as much as 6.1% in Toronto.
There’s no certainty that any of the companies will ultimately make an offer for Teck, and any potential transaction could face significant hurdles. The company is still controlled by its founding family, which successfully opposed an unsolicited bid last year from Glencore. And stringent new guidance restricting foreign takeovers in Canada has raised questions over whether a deal is even possible.
While it’s not clear whether Teck’s…
