Indian-Canada row: JSW Steel's Teck Resources buy stares at uncertainty

Steel firm was in race to buy Teck Resources' coal unit at a $8 bn valuation

JSW Steel’s plans to acquire the coal company owned by Teck Resources, a Canada-based company, at a total valuation of $8 billion have stalled as diplomatic relations between the two countries have deteriorated in the past few days.

The group firm was in talks with European and Japanese banks to raise funds for the acquisition, but the diplomatic stand-off has come as a dampener, according to bankers close to the transaction.

“This event has certainly delayed, if not cancelled, the entire transaction,” the banker said.

JSW Steel declined to comment on the transaction.

In August of this year, JSW Group