Teck Cominco to Buy Fording Assets
Zinc giant Teck Cominco(TCK Quote) will acquire all the assets of Fording Canadian Coal Trust (FDG Quote) in a cash and stock deal.
The transaction is estimated to be worth $13.9 billion, of which $12.4 billion will be in cash. The assets being acquired include royalties from Fording's 60% interest in the Elk Valley Coal Partnership. Elk Valley operates six mines in Alberta and British Columbia that produce high-quality hard coking coal. "Fording unit holders are receiving a significant premium to the Fording unit price during a time when comparable coal companies have declined substantially from their highs," said Teck's CEO Don Lindsay, in a prepared press statement. "For Teck, the transaction is expected to be immediately and strongly accretive to both earnings and cash flow." Shares of Teck were rallying more than 3% in recent market action. Fording was up 7%.- Loading Comments...
- Loading Comments...
Recent Comments
Featured Photo Galleries
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,309.92 | 1,091.49 | 2,138.44 | 32.31 |
Oil *
77.12
|
|
DOWN
154.48
|
DOWN
19.14
|
DOWN
37.61
|
DOWN
0.48
|
10 Yr
3.23%
SPDR Gold
115.06
|
|
-1.48%
|
-1.72%
|
-1.73%
|
-1.46%
|
Data delayed 20 minutes |














