Teck Cominco Ltd.'s deal to purchase Fording Canadian Coal Trust, Calgary, Alberta, for Canadian $14.1 billion ($13.8 billion) in cash and stock will have little immediate steel market impact, but the ongoing consolidation of the industry sends a message that high raw material prices are here to stay, analysts said.

Vancouver, British Columbia-based Teck already holds approximately 19.9 percent of Fording and is managing partner of the Elk Valley Coal Partnership, the metallurgical coal business from which Fording receives substantially all of its cash flow.

Under the terms of the agreement disclosed Tuesday, Fording unit-holders will receive $82 in cash and 0.245 of a Teck Class B subordinate voting share per Fording unit. In aggregate, Teck said it will pay approximately $12.4 billion in cash and issue approximately 36.9 million Teck Class B subordinate voting shares in consideration for the Fording assets.

The deal marks the second North American metallurgical coal deal announced this month. Cleveland-Cliffs Inc., Cleveland, has agreed to purchase Alpha Natural Resources Inc.,...