India-Canada row impact? JSW Steel, Teck Resources’ talks not concrete, says CEO Jayant Acharya
“There is nothing concrete on Teck. We are in discussion with strategic possibilities among which Teck is one,” Acharya told Reuters
Talks between JSW Steel and Canandian company Teck Resources over stake in the latter's coking coal unit have led to “nothing concrete”, JSW Steel CEO Jayant Acharya told Reuters on October 23.
“There is nothing concrete on Teck. We are in discussion with strategic possibilities among which Teck is one,” Acharya told the agency. Teck did not comment, but said it is “engaging with various counterparties regarding the steelmaking coal business”, the report added.
In September this year it was reported that India's largest steelmaker had “slowed down the process” to acquire a stake in Teck amid flailing diplomatic relations between Canada and India.
Diplomatic Tensions High
On the diplomatic tension affecting decisions, Acharya said they will see “how those situations evolve”, but it should not impact business decisions. He added that the company is also exploring opportunities in other countries, including Australia. No other specifics were mentioned.
Canadian and Indian diplomatic relations have taken a down turn after each expelled the other's diplomats. Relations turned sour after the murder of a Sikh separatist leader in British Columbia in June.
Business View
Rising prices of coking coal over the past month-and-half will impact costs during the October-December period unless moderated, Acharya said.
JSW Steel reported Q2 earnings last week, showing profits backed by lower input costs and robust domestic demand. The executive added that strong demand means the domestic market would continue be their focus.
"We are not pursuing exports since domestic demand is very strong," he said, adding that exports were likely to be in the range of 10-15 percent of overall sales.
On the Israel-Hamas war affecting business, Acharya said the company has “very minimal” presence in the Middle-East.
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Business NewsCompaniesNewsIndia-Canada row impact? JSW Steel, Teck Resources’ talks not concrete, says CEO Jayant Acharya
First Published:24 Oct 2023, 09:20 AM IST
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