John Manley joins BNN Bloomberg to discuss Canadian regulatory approvals and the economic impacts of Swiss company Glencore announcing it will buy a majority stake in Vancouver-based Teck's coal business for US$6.93 billion. The deal paves the way for Teck to split its operations in to two companies: one focused on coal and the other on new metals.
John served as Canada’s finance minister between 2002 and 2003 and said he believes changes from Glencore's earlier offer will help it pass regulatory scrutiny.
“This is a much easier deal to sell to the Canadian government than the previous one was, partly because … it’s not for the whole company, it’s just for the coal assets, so you’ll continue to have a very important Canadian critical metals company in existence in the remainder of Teck,” he said.
John also pointed to the fact that this deal is no longer a hostile takeover, which should make it easier for the governments to accept.