Shareholder Urges Glencore to Retain Coal Business Despite Teck Acquisition
Tribeca Investment Partners, a shareholder of Glencore, is advocating for the mining giant to retain its coal business even after finalizing the acquisition of Teck Resources’s coal-mining unit.
While many of Glencore’s industry peers have divested from coal due to investor pressure, Tribeca believes that Glencore should maintain ownership of its coal assets, citing their world-class quality and strategic importance to the company’s earnings profile and shareholder value.
Glencore’s initial plan was to spin off the combined coal unit following the completion of the Teck acquisition, pending shareholder approval. However, Tribeca opposes this divestiture and urges Glencore’s board to retain the assets.
In response to inquiries about its coal strategy, Glencore CEO Gary Nagle reiterated the company’s intention to spin out the coal business.
However, he emphasized that the decision ultimately rests with shareholders, indicating a willingness to consider their preferences.
In addition to advocating for the retention of the coal business, Tribeca suggested that Glencore should consider relocating its primary listing from London to Australia, prioritize dividends over buybacks, and explore the possibility of selling a stake in its trading business.
