Teck Cominco approved by European Commission to acquire Fording

New York, Sept. 15 - Teck Cominco Ltd. said it received competition clearance from the European Commission for its proposed acquisition of all the assets of Fording Canadian Coal Trust.

The Vancouver, B.C.-based mining company noted that Canadian, U.S. and Turkish competition authorities have also cleared the transaction.

Approvals from the Canadian Minister of Transport and Korean competition authority remain outstanding.

Teck Cominco is working with its bank lenders to complete definitive documentation for its fully underwritten $9.8 billion bridge and term loan facilities and expects to have documents in place before the Fording unitholder vote scheduled for Sept. 30.

Teck Cominco added that it is also in discussions with a number of parties concerning the sale of its approximate 19.65% interest in units of Fording, subject to Fording unitholders approving Teck's acquisition of Fording's assets at the meeting and the satisfaction of the other conditions. Teck intends to apply the proceeds of the sale of units, together with the proceeds of the bridge and term loan facilities, to the cash portion of the purchase price for Fording's assets.

The transaction is expected to close on Oct. 30.

Fording, located in Calgary, Alta., is an open-ended mutual fund trust and one of the largest royalty trusts in Canada.

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