Why Teck Resources Stock Rocketed 27.5% in April

Shares of Teck Resources (NYSE: TECK) surged 27.5% in April, according to data provided by S&P Global Market Intelligence. The catalyst was mining and commodities trading giant Glencore's (OTC: GLNCY) offer to acquire Teck Resources and de-merge its combined coal businesses. That move upended Teck Resources' plan to separate into two independent companies. 

In February, Teck Resources unveiled to shareholders its plan to spin off its steelmaking coal business. That transaction would have created two independent public companies: Teck Metals and Elk Valley Resources. Teck Metals would have focused on energy transition metals like copper and zinc, while Elk Valley would have concentrated on steelmaking coal. 

However, Teck Resources abandoned that plan last month following feedback from shareholders. CEO Johnathan Price stated: "Our plan going forward is to pursue a simpler and more direct separation, which is the best path to unlock the full value of Teck for our shareholders." 

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Source Fool.com