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The coal business is one of Glencore’s most profitable units, driving record returns in recent years
Glencore said it will announce whether it plans to spin off its coal business at its results next week, after completing the purchase of Teck Resources’ coal mines earlier this month.
The coal business is one of Glencore’s 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 earlier this year that several of Glencore’s largest shareholders believe the company should retain its coal assets.
“We are now in the process of consulting with shareholders to assess their views regarding the potential demerger of our coal and carbon steel materials business,” Glencore said on Tuesday (Jul 30). “We expect to be able to announce the outcome of such engagement and the decision of the board regarding the potential demerger alongside our interim results next week.” BLOOMBERG
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