Teck Gets Cash & Ties, Without Influence

China's resource grab continued into July with the purchase of a 17.2% stake in Canadian miner Teck Resources. The agreed acquisition for CAD1.74bn by the country's sovereign wealth fund (SWF), China Investment Corporation, marks the largest Chinese investment in a Canadian mining company to date, and solidifies Teck's ties with the world's most important commodity consumer. Furthermore, in CFW's view, it has continued the CIC's new strategy of making more careful, low-key deals as it begins investing again, after being scared off by its first investment in 2006 in Blackstone Group's initial public offering.

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