Glencore to consult investors on coal spinoff after Teck deal
Glencore will start consulting with shareholders on the future of its coal business as soon as its deal to buy Teck Resources’ mines closes later this year.
Crucially, Glencore said that should the majority of shareholders support keeping its coal mines, the company will not proceed with a vote.
Glencore’s coal business is one of its most profitable units, driving record returns in recent years, and the plan to exit the fossil fuel 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 jettisoning coal, arguing that the world still needed the dirtiest fuel and that it was more responsible to run the mines itself than sell them.
Bloomberg reported last month that several of Glencore’s largest shareholders believe the company should retain its coal assets.
The deal to buy Teck’s coal mines is expected to close in the third quarter.
Once the acquisition closes, Glencore will immediately consult with investors, Nagle said at the company’s annual shareholder meeting on Wednesday. That will dictate the firm’s next move on coal, he said.
Nagle said that if the majority of shareholders want to keep coal, there will be no vote. Should the consultation show support, there will be a binding vote.
That approach would potentially allow Glencore to avoid some of its shareholders having to vote against a company proposal should they want to keep coal.
The company’s largest shareholders are former CEO Ivan Glasenberg, the Qatar Investment Authority and BlackRock.
Glencore, the world’s largest shipper of thermal coal with a market capitalization of about $75-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.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
