Santos throws down M&A cost-cutting gauntlet 22 Jul 2022 The $17 bln fossil-gas giant took just six months to deliver promised savings from acquiring Oil Search. That handily beats the 18-month timeframe advocated by McKinsey, and embarrasses ANZ’s six-year timetable for its Suncorp deal. CEO Kevin Gallagher has raised the synergy bar.
War helps Russian nickel king expand his realm 5 Jul 2022 Tycoon Vladimir Potanin may merge Norilsk Nickel with aluminium maker Rusal. The West would be extra wary of sanctioning such a giant for fear of roiling metals markets. The pair may have some synergies, but their two main owners don’t get on. It would be a governance nightmare.
Lithium landgrab sparks new electric-car risk 24 Jun 2022 Tesla, Stellantis and others want to lock in long-term supplies of the battery component. Elon Musk might even try mining it. Such steps are enticing after the metal’s price rose tenfold in two years. But deals struck under duress can be a shock to the system down the road.
Gold Fields shells out to beat the ageing process 31 May 2022 The Johannesburg miner is buying Canada’s Yamana in a $6.7 bln all-share deal, creating the world’s fourth-biggest bullion producer. Scant cost savings don’t justify the premium. Given his middle-aged mines, CEO Chris Griffith has little option but a target with a longer future.
Capital Calls: Airbnb, Prudential, Glencore 25 May 2022 Concise views on global finance: The $68 bln vacation-booking platform will shut its Chinese business; the insurer appoints a new CEO – finally; the commodities giant has a $10 bln reason to keep its nose clean, after a $1.5 bln settlement for corruption allegations.
Review: Pandering to Beijing has shrinking payback 1 Apr 2022 One difference between the Cold War and current Sino-U.S. tensions is the crowd of capitalists rooting for the communists. In “America Second,” Isaac Stone Fish lambasts the CEOs and lobbyists who take China’s side. Yet the return on sucking up, never high, is falling sharply.
AMC’s diversification is anything but golden 15 Mar 2022 The $7 bln theater chain is taking a 22% stake in gold miner Hycroft. The main thing the companies share is a relationship with investor Mudrick. AMC could use a revamp and creative solutions might work. But an idea so outlandish undermines other more plausible possibilities.
Rio’s Mongolian generosity reflects strategic bind 14 Mar 2022 The $120 bln miner has offered $2.7 bln to buy out minority investors in Turquoise Hill, which controls the giant Oyu Tolgoi copper mine. Rio Tinto could have paid less last year. But its lack of metals needed for alternative energy makes it vital to remove any future barriers.
Glencore is gaining ground on its trust issues 15 Feb 2022 The $77 bln commodity giant has set aside $1.5 bln to settle graft probes. That’s better than feared. And an improving valuation suggests investors are less bothered about its desire to stick with coal. But the mineral remains sufficiently controversial to check further upside.
BHP’s deal willpower put to ultimate test 15 Feb 2022 A record $7.6 bln interim dividend speaks to the miner’s rude health. Boss Mike Henry sees opportunities from inflation and less risk in China. His confidence and a simplified share structure make capital discipline even harder in the quest to bulk up on energy-transition metals.
Rio’s culture rot puts investors on the spot, too 14 Feb 2022 The miner’s endemic racism, sexism and bullying is a wider wake-up call. Shareholders tend only to push firms for board diversity and equal pay. Yet a dysfunctional workplace runs deeper, affecting earnings and even M&A. It’s time social failings got some climate-style activism.
Rio Tinto’s cultural fix will be an uphill dig 2 Feb 2022 The $117 bln mining giant is rife with bullying and racial and sexual abuse, according to a damning report. Miners’ improved safety records show reform is possible, if hard. Investors’ apparent indifference, though, makes prioritising workplace respect even tougher.
New backer would fuel Aussie hydrogen hype machine 25 Jan 2022 Fortescue’s ambitious plans to use the gas for renewable energy help it trade at a premium to mining peers. Scant detail raises concerns, however. Chair Andrew Forrest could ease them by selling a stake in the FFI green unit, as GM and Ford did with their self-driving outfits.
Serbia’s Rio smash dents EU electric-car dream 21 Jan 2022 The Balkan state nixed the $120 bln miner’s lithium project on environmental grounds. A looming election and spat over tennis ace Novak Djokovic didn’t help. Belgrade’s status as an investment destination is at stake. So are European hopes for reliable local battery ingredients.
Kazakh oligarch shakeup may give foreigners a shot 12 Jan 2022 President Tokayev needs to consolidate power after unrest and raise cash to placate his citizens. Billionaires allied to his predecessor are obvious targets. Since he lacks a go-to gang to take over mining assets, he may favour gradual redistribution and more external investment.
Rio Tinto’s new chair is an odd change agent 20 Dec 2021 The $105 bln miner has appointed Dominic Barton to run its board. China experience fits well with managing Rio’s key relationship, but scandal tainted McKinsey while he ran the consultancy. For a group trying to move on from its own controversies, it’s a strange choice.
Rio Tinto Mongolian hardball ends up looking soft 13 Dec 2021 The $105 bln miner has offered to write off a $2.3 bln loan to Ulaanbaatar linked to the Oyu Tolgoi copper project. Boss Jakob Stausholm is giving up billions of dollars in interest. But holding firm risked the company being chucked off a project that could bring in a lot more.
Fortescue unearths transition leadership challenge 10 Dec 2021 The Aussie miner’s CEO will step down, a year after Chairman Andrew Forrest unveiled his bold green-hydrogen plans. Straddling iron ore and new energy is no easy feat. Others trying to remake themselves for a new era also will wrestle with finding the right person for the job.
Capital Calls: Volkswagen, Turkey 1 Dec 2021 Concise views on global finance: The German carmaker may take mining stakes to secure electric-vehicle raw materials, echoing Henry Ford, the U.S. production-line pioneer; the Turkish central bank is resorting to old tricks to prop up the lira but it’s an unsustainable strategy.
Glencore’s activist is misguided but not unhelpful 30 Nov 2021 Bluebell is pushing the $63 bln miner-trader to spin off coal. Thungela’s plans to dig up more of the mineral after its Anglo spinoff weaken the argument, and prices are at record highs. Still, if it makes Glencore quit coal quicker than its 2050 target, it’s a job well done.