Parties
Company
Suncor Energy
Company
Teck Resources
On October 27, 2022, Teck Resources Limited ("Teck") announced the sale of its 21.3% stake in the Fort Hills Energy Limited Partnership ("Fort Hills") and related downstream assets to Suncor Energy Inc. ("Suncor"). The transaction is priced at around $1 billion in cash, subject to standard closing adjustments, with an effective date of November 1, 2022. This valuation aligns with the recent comprehensive review of Fort Hills carried out by Suncor. Teck's CEO, Jonathan Price, expressed that the sale aligns with the company's strategy to emphasize copper growth and pivot to low carbon metals. Decisions regarding the use of the sale's proceeds will be made in early 2023. The transaction is expected to close in the first quarter of 2023, contingent on customary conditions and regulatory approvals. Due to this sale, Teck anticipates a non-cash impairment charge of approximately $950 million post-tax in the third quarter of 2022. RBC Capital Markets and J.P. Morgan Securities Canada have served as Teck's financial advisors for this deal.
Deal Type
Merger & AcquisitionIndustry
MiningTransaction
$ 1,000,000,000Deal Status
ClosedClosing Date
02 February 2023