By Robb M. Stewart

Glencore has struck a deal to buy the outstanding shares of PolyMet Mining, gaining full control of a mine development company that holds a 50% stake in a copper and nickel joint venture with Teck Resources.

PolyMet on Monday said Glencore, under a definitive agreement, would buy the roughly 18% of issued and outstanding shares it doesn't currently own for $2.11 in cash a share, 2.9% above the last closing price for PolyMet and more than double where it was trading in late June before Glencore pitched an offer to buy the shares.

The company said a special committee established to consider the deal and available alternatives unanimously recommended PolyMet's board approve the transaction. The acquisition of the shares remains subject to shareholder approval at a meeting set for the end of the third quarter or early in the final quarter of the year, PolyMet said.

Glencore holds an about 82% stake in Minnesota-based PolyMet.

The move to take over PolyMet comes after Glencore approached Canadian miner Teck over buying its coal assets, an alternative to its proposal to buy all of Teck in a roughly $23 billion deal. Teck has rejected a full-blown merger with Glencore and has said it was engaging the company about its latest proposal, one of several inquiries it had received about potential transactions for its coal business.

In premarket trading, PolyMet's shares were 2.4% higher after ending Friday at $2.05 on the NYSE American, down 16% this year. The shares have fallen 20% year-to-date in Toronto, last closing at C$2.69.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

July 17, 2023 08:32 ET (12:32 GMT)

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