Indian interlopers can disrupt global mining M&A 25 Aug 2023 Sajjan Jindal’s JSW Steel can afford Teck’s coal unit. A full or part bid rivalling Glencore’s $8 bln offer would secure key raw materials and reduce the risk of geopolitical supply shocks. It’s a strong motive for buyers in the fastest growing market for the alloy to do deals.
BHP’s dividend cut is canary in ore mine 22 Aug 2023 Boss Mike Henry is talking up the $140 bln miner’s ability to withstand everything from lower commodities prices to China risks. He has a point. But shareholder payouts have fallen to 64% of earnings from last year’s 77%. It suggests some steeling for short-term global shocks.
China woes put global miners’ optimism to the test 21 Aug 2023 BHP boss Mike Henry and Fortescue peer Fiona Hick have remained bullish on the People’s Republic even as the country’s economy, and their own shareholders, waver. Absent Beijing unveiling a big stimulus package, the CEOs are likely to have to revise their enthusiasm.
Saudi pays rich but logical price for Vale metals 28 Jul 2023 The kingdom is buying one-tenth of the $66 bln Brazilian miner’s nickel and copper arm. The $26 bln valuation on Vale’s base metals unit is steep, but cheaper than a full takeover. It also acts as a down payment on Saudi’s efforts to become an energy transition industrial hub.
Glencore deal epitomises net zero’s reduced status 27 Jul 2023 The $75 bln miner used to argue it was better to wind down its coal assets than sell them to a less responsible owner. Now CEO Gary Nagle wants to buy a rival and spin off the enlarged coal unit. Investors, distracted by energy security and fat profits, are unlikely to stop him.
Macquarie and KPMG fall down M&A mine shaft 21 Jul 2023 The two were advisers in Aussie nickel extractor IGO’s near-$1 bln takeover of rival Western Areas. The buyer has now written down most of the asset’s value. Clawing back IGO bosses’ bonuses and the counsellors’ fees wouldn’t repair the damage, but it would be a good start.
China’s rare metals swipe has more bark than bite 4 Jul 2023 Beijing is imposing export controls over gallium and germanium, used in chips, fibre optics and military equipment. This confirms Western fears that the country might leverage its strategic metals dominance to push back on sanctions. Yet market realities blunt China’s edge.
Capital Calls: London crypto move, Stellantis SPAC 12 Jun 2023 Concise views on global finance: British Prime Minister Rishi Sunak welcomes Andreessen Horowitz’s UK office just as cryptocurrencies face a regulatory crackdown in the US; the European carmaker’s move to back a London blank-check vehicle is less hairy than it sounds.
Glencore’s Bunge redux may yield Teck benefits 26 May 2023 The Swiss commodity giant could merge the agri-trader it part-owns with its $14 bln US-listed peer. A Bunge deal would be oddly timed, and Glencore has other ways to raise cash. But the bid may offer a way to spur Glencore’s share price as it mulls a new offer for Canada’s Teck.
Capital Calls: Wood Group 15 May 2023 Concise views on global finance: Apollo’s aborted bid for the $1 bln UK infrastructure firm prompted a 35% share price fall.
Lithium miners unearth shovel-ready $11 bln deal 10 May 2023 Australia’s Allkem and US peer Livent are uniting to create an energy-transition titan. EV makers scrambling for battery materials should like a combined explorer and processor with no Chilean exposure. Bigger is strategically better, and helps the merger stack up financially.
Glencore’s best Teck tactic is a surgical strike 28 Apr 2023 The Swiss commodities giant has little room to sweeten its $23 bln offer for the Canadian miner without hurting its own shareholders. It can, however, afford a disproportionately higher premium to the controlling Keevil family. Common-stock owners would have to see the upside.
Chile’s lithium grab puts foreign miners on notice 21 Apr 2023 President Gabriel Boric will force producers of the EV battery metal to be junior joint-venture partners to the state. Foreign miners expected a tax hike, and global lithium supplies are diversifying. But Boric’s gambit means copper players like BHP will wonder if they’re next.
Teck breakup vote is just a battle in Glencore war 21 Apr 2023 The Canadian miner’s carve-up plan will fail if even a minority of investors vote against it next week. That’s quite possible, and would constitute an initial win for Glencore’s rival $23.5 bln offer. But the Swiss group would still face a struggle to get its own deal accepted.
Glencore Teck tweak is necessary, not sufficient 11 Apr 2023 The Swiss group’s $23 bln offer for the Canadian miner now includes up to $8 bln of cash. That means its target’s shareholders can avoid taking payment in dirty coal shares. But Glencore may still have to raise the value of the overall bid to bring Teck investors on side.
Capital Calls: IMF’s grim outlook, Electric cars 11 Apr 2023 Concise views on global finance: The International Monetary Fund’s medium-term forecast for the global economy is the bleakest since 1990; lower proposed mileage ratings for electric vehicles could force automakers to sell more of them to meet regulatory standards.
Glencore’s Teck gambit could slip on an oily patch 6 Apr 2023 The Swiss commodity giant’s $22 bln plan to buy its Canadian peer and spin off its coal arm offers an alternative to investors voting on Teck’s own breakup plan. Yet Glencore’s oil trading unit may hurt the value of the non-coal bit. Teck’s pitch has flaws too, but looks cleaner.
Glencore will have to dig deep for Canadian miner 3 Apr 2023 Teck Resources rejected the Swiss giant’s plan for a $23 bln all-share takeover and spinning off their combined coal units. The Canadian firm is pursuing its own split. Since the deal would help solve Glencore’s dirty-fuel problem, it will have to pay more to win over its target.
Nickel could sap electric cars’ climate batteries 31 Mar 2023 Although EVs are less emissions-intensive than gas guzzlers over a vehicle’s lifetime, their supply chains produce more greenhouse gases. Battery ingredient nickel is among the culprits. Car and cell makers may be exposed as investors and watchdogs scrutinise carbon footprints.
Capital Calls: World Bank, Bumble, Wood Group 23 Feb 2023 Concise views on global finance: The U.S. picks ex-Mastercard boss Ajay Banga to run the multilateral development bank; while the dating app’s shares are down, private equity owner Blackstone is still in the money; the UK oil services group has turned down three bids from Apollo.