Glencore’s Post

Several of Glencore Plc’s largest shareholders believe that the company should retain its coal assets, according to people familiar with the matter, throwing a proposed spinoff into doubt. Glencore, the world’s largest shipper of thermal coal with a market capitalization of about $73 billion, had said it intended to spin the business off within two years of closing a deal to buy the steelmaking coal assets of Teck Resources Ltd. But major Glencore shareholders believe that the company would be better off retaining its coal business, the people said, asking not to be identified because the information is private. The company’s largest shareholders are former Chief Executive Officer Ivan Glasenberg, the Qatar Investment Authority, and BlackRock Inc. Glencore’s coal business is one of its most profitable units, driving record returns in recent years, and the plan to exit coal and list a new company in New York represented a major strategic pivot under current boss Gary Nagle. The company had long resisted pressure to follow rivals in exiting the business, arguing that the world still needed the dirtiest fuel and that it was more responsible to run the mines itself than sell them. It’s not clear when and in what form Glencore might put the spinoff to a shareholder vote, with the deal to buy Teck’s coal business yet to close. The shareholders will only form a final view once there is a concrete proposal on the table, and their stance could still evolve, the people cautioned. Dinesh Nair Thomas Biesheuvel #mining #coal #glencore #commoditytrading #metals https://lnkd.in/ei96PUKc

𝗚𝗹𝗲𝗻𝗰𝗼𝗿𝗲 𝘀𝗵𝗲𝗹𝘃𝗲𝘀 𝗰𝗼𝗮𝗹, 𝗰𝗮𝗿𝗯𝗼𝗻 𝘀𝘁𝗲𝗲𝗹 𝗱𝗲𝗺𝗲𝗿𝗴𝗲𝗿 𝗽𝗹𝗮𝗻 by Paul Lim; Fastmarkets Global #commodities giant Glencore has announced its decision to retain its #coal and #carbonsteel materials business, abandoning earlier plans for a demerger. The #company indicated that #feedback from #shareholders and the potential #financial #benefits of keeping the coal and carbon steel #assets within the group were key #factors in the reversal. This means #Glencore will retain its #ferroalloys #business, which is part of its #steel #business and includes #chrome, #vanadium and #manganese assets. “The expected cash generative #capacity of the #coal and #carbonsteel materials business significantly enhances the #quality of our #portfolio, by #commodity and #geography and broadens our ability to fund our strong portfolio of #copper growth #options as well as accelerate shareholder returns,” Kalidas Madhavpeddi Glencore chairman said. The details and the article link is here: https://lnkd.in/dyQzSCXB

Glencore to Consult Investors on Coal Spinoff After Teck Deal Glencore said that should the majority of shareholders support keeping its coal mines, the company will not proceed with a vote. https://lnkd.in/g-gVpA87 Investors are increasingly concerned about a lack of commitment and action to reduce Scope 3 emissions among fossil fuel producers. There is also growing acceptance among investors that divesting coal assets is not the responsible approach to reducing emissions. Some Glencore shareholders have expressed concern about the company’s coal spin-off plan. In IEEFA’s view, previous, recent cases of coal divestments to pure-play miners show they are right to be concerned.  https://lnkd.in/dGVkPG_X #coal #Glencore #energytransition This Analysis is for information and educational purposes only and is not intended to be read as investment advice. Please read our full disclaimer here: https://lnkd.in/gA_Nh-56

Yancoal Australia Ltd has cancelled its interim dividend as the coal company seeks to boost cash reserves with a view to acquiring new coal assets. #Yancoal CEO David M. said the company was particularly interested in picking up metallurgical coal assets to complement its existing portfolio, which includes premier #ThermalCoal mines in Australia. Moult highlighted how the strategy aligned with previous successful acquisitions, such as its US$2.45 billion purchase of Coal & Allied from Rio Tinto in 2017. The decision to withhold interim dividends, however, sparked investor dissatisfaction, leading to a notable share price decline. More at #Proactive #ProactiveInvestors #YAL #http://ow.ly/WPny105G426

This is such a powerful example of the power that investor pressure can have over business strategy. Two years ago, there was "significant shareholder support" for Glencore's 'managed decline strategy', which is [still] core to its #transition strategy. Spinning out the coal assets would absolutely have accelerated the company's transition (on paper) but wouldn't have forced the same hands-on approach to #decarbonisation that holding on to those assets has done. Probably not the (main) intention of the investors that are likely keener on the short-term profits this could generate, but definitely a positive in terms of encouraging (even if it is unintentionally) #activeownership over #divestment that may have negatively impacted the potential for positive #realworldimpact.

🌍 Coal to Copper: Anglo's $4.9 Billion Pivot to a Greener Future 🌱 Anglo American’s $4.9 billion divestment of its steelmaking coal business is a clear signal: sustainability and future-facing metals are the new priorities. 🔑 Key Insights: - Aligning with carbon neutrality goals by 2040. - Doubling down on high-demand metals like copper, platinum, and nickel—critical for renewable energy and tech. 💡 For aspiring CA(SA)s, this is a reminder of the pivotal role finance professionals play in ESG-driven strategies and portfolio transformation through strategic mergers and acquisitions. 🔗 Read the full article and sign-up for weekly insights straight to your inbox below. https://lnkd.in/daUK6cDE

Glencore’s #coal spin-off plan: Responsible #investors are right to be concerned 👨💼 Simon Nicholas || Lead Analyst, Global #Steel In our latest recent Briefing Note, Simon Nicholas sheds light on Glencore's proposed spin-off of its #coal business, highlighting key concerns for responsible investors: 🔹 Glencore's commitment to reducing coal production and Scope 3 emissions may be compromised if the spin-off proceeds. 🔹 Previous divestments have shifted control to pure-play coal miners with bullish production plans. 🔹 Investor concerns about coal divestments and pressure on Scope 3 emissions are on the rise. 🔹 Despite highlighting a brighter outlook for metallurgical coal, the spin-off primarily focuses on thermal coal. Continue reading 👇 https://lnkd.in/eaFXMfMt #Glencore #CoalDivestment #Steel #Scope3 #CoalInvest 

via Proactive Latin Resources Limited Managing Director, Christopher Gale joins Proactive after the board agreed to a takeover by Pilbara Minerals Limited for approximately A$560 million. Under the terms of the deal, #LRS shareholders will receive Pilbara Minerals shares at a 57% premium to LRS’s current share price. Specifically, shareholders will receive 0.07 #PLS shares per LRS share, valuing each LRS share at A$0.20. The deal offers immediate and longer-term benefits to LRS shareholders, including exposure to #lithium production and a de-risked development of the Salinas Lithium Project, leveraging Pilbara Minerals’ expertise. Watch the full interview: https://loom.ly/MHYL3wk #LatinResources #ASX

Anglo American PLC said that it will sell its remaining steel-making coal mines in Australia for up to $3.78 billion in cash to Peabody Energy, a U.S. miner, as it presses ahead with a corporate restructuring plan to reward shareholders. https://lnkd.in/eg6-6Qww