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LONDON, July 27(Reuters Breakingviews) - The world is getting hotter, but when it comes to achieving net zero investors are cooling. Glencore (GLEN.L), the $75 billion Swiss group that is one of the world’s biggest coal miners, makes an interesting case study for what’s changed. Either way, the plan raises the prospect of Glencore bulking up in coal before offloading some or all of the enlarged business. True, a listing of Glencore’s enlarged coal business might not happen for a few years. While prices have now more than halved, Glencore‘s coal business would still make $9 billion in EBITDA in 2023 if they averaged $200 a tonne.

Persons: what’s, Glencore, Gary Nagle, Nagle, Teck, wouldn’t, There’s, Wael Sawan, Larry Fink, underwhelmed, ” Nagle, Glencore’s, George Hay, Karen Kwok, Peter Thal Larsen, Aditya Munjuluru Organizations: Reuters, Resources, Teck Resources, Bluebell Capital Partners, Investment, International Energy Agency, Reuters Graphics Reuters, Rio Tinto, BHP, GQG Partners, Capital Research Group, BlackRock, Vanguard, Services, Saudi, Aramco, United Nations, of, Pensions, Shell, Financial Times, “, Melbourne Mining, Capital Partners, Thomson Locations: Glasgow, Ukraine, EBITDA, American, U.S, Glencore, London, New York, Europe, Melbourne

☆ China’s rate cut highlights stimulus stubbornness
▼ + stars: | 2023-06-14 | by ( ) www.reuters.com time to read: +2 min

In stark contrast to its peers, Chinese consumer inflation has nearly evaporated, standing at only 0.2% last month. In that context, cutting short-term borrowing costs to improve liquidity in the interbank market is the very least Beijing can do. It does suggest policymakers see credit demand weakening further, and the move will help domestic companies roll over debt. But as the small size of the latest cut suggests, this is not going to rally private sector investment or consumption much on its own. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Pete Sweeney, Una Galani, Thomas Shum Organizations: Reuters, Commodities, Twitter, Thomson Locations: TOKYO, Beijing, India, Teck

☆ Sony’s India deal episode hits fresh cliffhanger
▼ + stars: | 2023-06-13 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, June 13 (Reuters Breakingviews) - Sony's (6758.T) Indian unit keeps running into fresh plot twists. The deal, in the works since late 2021, has already overcome multiple hurdles. Zee has weathered shareholder calls for a rejig of the company’s board and from creditors to declare it insolvent. After all, it is a strategic combination designed to take on Disney (DIS.N), Reliance Industries (RELI.NS), Netflix (NFLX.O) and others. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Punit Goenka, Subhash Chandra, Goenka, Shritama Bose, Una Galani, Thomas Shum Organizations: Reuters, Zee Entertainment, Securities, Exchange Board, India, Sony, Disney, Reliance Industries, Netflix, Zee, Twitter, Brookfield, Thomson Locations: MUMBAI, London, Teck, China

☆ Embracer’s standalone pitch hits the right buttons
▼ + stars: | 2023-06-13 | by ( ) www.reuters.com time to read: +2 min

The $3 billion video-game holding company announced on Tuesday that it would slash costs and investments to achieve a more “stable future”. The new strategy is to rely on its own free cash flow, rather than partnerships or capital hikes, to fund the business. Wingefors wants to cut overhead costs by at least 10% compared to the last quarter’s annual run rate. At least Wingefors’ new standalone survival strategy gives him a stronger negotiating hand if a bid comes along. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Lars Wingefors, it’s, Wingefors, Oliver Taslic, Liam Proud, Pranav Kiran Organizations: Reuters, Investors, Twitter, Thomson Locations: India, Teck, China

☆ Glencore’s Teck coal approach sends two signals
▼ + stars: | 2023-06-12 | by ( ) www.reuters.com time to read: +2 min

LONDON, June 12 (Reuters Breakingviews) - At first sight, the latest Teck Resources (TECKb.TO) chess move by Glencore (GLEN.L) is slightly confusing. While that approach still stands, Glencore on Monday said it has now also submitted a cash offer to buy only Teck’s coal unit. Teck’s coal arm is expected to make $2.9 billion of EBITDA in 2024, according to analysts’ estimate polled by Refinitiv, which on the 3 times multiple at which its steelmaking coal peers trade implies an $8.5 billion valuation. Yet Glencore is already offering cash for the coal arm in its punt for the whole company. One is to try to encourage Teck’s board to engage in discussions, given the coal arm has already received interest from Nippon Steel (5401.T) and billionaire Pierre Lassonde.

Persons: Glencore, Gary Nagle’s, Pierre Lassonde, Bunge, Nagle, Karen Kwok, Xavier Niel, George Hay, Oliver Taslic Organizations: Reuters, Teck Resources, Refinitiv, Nippon Steel, Twitter, Brookfield, Thomson Locations: China

☆ Stellantis SPAC deal has suitably decent airbags
▼ + stars: | 2023-06-12 | by ( ) www.reuters.com time to read: +2 min

LONDON, June 12 (Reuters Breakingviews) - Carmakers are in a race to lock in battery metals like lithium. For shareholders, the risk is that they tie up capital in expensive supply deals, or mines in far-flung locations with poor governance. Stellantis’s (STLAM.MI) investment in a London-based special purpose acquisition company deal looks like a neat fix to those challenges. In a complex deal, halfway between an IPO and a SPAC takeover, it will buy the Serrote and Santa Rita mines in east Brazil for $1.1 billion. Besides the original SPAC investors, the bulk of that will likely come from a public offering, and new anchor investors like Stellantis.

Persons: Nat Rothschild’s Vallar, Artem Volynets, Neil Unmack, Xavier Niel, George Hay, Oliver Taslic Organizations: Reuters, Twitter, Brookfield, Thomson Locations: London, Santa, Brazil, Teck, China

☆ London crypto move is a sign of desperate times
▼ + stars: | 2023-06-12 | by ( ) www.reuters.com time to read: +2 min

NEW YORK/LONDON, June 12 (Reuters Breakingviews) - UK Prime Minister Rishi Sunak is eager to bring some Silicon Valley glitz to London. Now venture capital investor Andreessen Horowitz is setting up its first non-US office in the British capital, to focus on blockchain and cryptocurrencies. The then-finance minister in 2021 declared as “fantastic” the decision by Deliveroo (ROO.L) to list its shares in London. Despite Sunak’s call for the UK to “embrace new innovations” like the blockchain, Britain’s appetite for crypto remains uncertain. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Rishi Sunak, Andreessen Horowitz, Binance, Sunak, Deliveroo, “ gosh, Bobby Kotick, Anita Ramaswamy, Karen Kwok, Stellantis, Peter Thal Larsen, Streisand Neto Organizations: Reuters, U.S . Securities, Exchange Commission, Coinbase, Stanford University, Chips, Activision Blizzard, Twitter, Brookfield, Thomson Locations: London, U.S, Teck, China

☆ Environmental Issues Complicate Glencore’s $23 Billion Merger Fight
▼ + stars: | 2023-05-05 | by ( Julie Steinberg | ) www.wsj.com time to read: 1 min

Glencore says that by 2050 it will run down its coal operations, like this one in Ravensworth, Australia. Photo: Loren Elliott/REUTERSMining company Glencore ’s roughly $23 billion offer for Teck Resources of Canada has injected a new variable into the calculus for big global deal making: ESG. Usually, the stumbling blocks to a big deal involve some combination of price, control or strategic fit. Teck, however, is also publicly raising environmental, social and governance issues in its refusal so far to engage with Glencore about a potential tie-up.

☆ Teck Resources Again Rebuffs Glencore’s $23 Billion Approach
▼ + stars: | 2023-04-13 | by ( Vipal Monga | Julie Steinberg | ) www.wsj.com time to read: 1 min

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☆ Glencore’s Teck gambit could slip on an oily patch
▼ + stars: | 2023-04-06 | by ( Karen Kwok | ) www.reuters.com time to read: +4 min

Valued at 6 times its expected 2024 EBITDA of $3.2 billion, Teck’s metals unit would be worth just under $20 billion. Glencore boss Gary Nagle’s alternative plan, which would hand Teck shareholders 24% of the enlarged company, initially looks more appealing. Nagle can’t put the business, the pride of Glencore founder Marc Rich, together with the new coal unit. The risk for Nagle is that Teck shareholders do too. Teck shareholders will vote on the company’s proposal on April 26.

☆ Glencore Subsidiary Sentenced, Ordered to Pay $30 Million to Medical Company
▼ + stars: | 2023-02-28 | by ( Dylan Tokar | Richard Vanderford | ) www.wsj.com time to read: +4 min

A Glencore lawyer on Tuesday said the company now expects to pay as much as $1.5 billion in total penalties, up from the $1.2 billion it initially agreed to pay last year. Glencore faced several restitution claims after agreeing to its settlement last year, including from Petróleos Mexicanos SA de CV, or Pemex, Mexico’s state-owned oil company. The negotiated monetary penalty paid by the Glencore subsidiary is lower than what is called for under federal sentencing guidelines, a reflection of Glencore’s cooperation, Judge Schofield said at Tuesday’s sentencing. Glencore gave prosecutors more than a million documents, including from overseas, where prosecutors lack subpoena power, the judge said. The company also agreed to overhaul its compliance program and will be under an independent monitorship for three years, she said.

☆ Miners’ bets on the future of coal are diverging
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +2 min

LONDON, Feb 23 (Reuters Breakingviews) - Investors have a common understanding that coal is the dirtiest energy source. UK-listed Anglo American’s (AAL.L) earnings on Thursday showed EBITDA in the $50 billion group’s metallurgical coal division tripled to over $2.7 billion in 2022. With “met coal” constituting a fifth of Anglo’s overall EBITDA, investors may wonder whether boss Duncan Wanblad will follow Teck’s step. That’s probably because even though met coal generates three times more carbon than thermal coal, used to generate electricity, it’s still expensive to produce steel at scale in a sustainable way without using a coal-guzzling blast furnace. Anglo’s experiences hiving off its own thermal coal business, meanwhile, may not encourage Wanblad to repeat the trick.

☆ Glencore Profits Handsomely at the Fulcrum of Energy Transition
▼ + stars: | 2023-02-15 | by ( Megha Mandavia | ) www.wsj.com time to read: 1 min

For Glencore, coal remains a comfortable cushion until the copper supercycle kicks off in earnest. Coal gave Glencore —one of its last major allies—a lot to be grateful for in 2022. This year, its fortunes will depend more on a metal powering the other end of the global energy transition: copper. The mining and commodities-trading company posted another year of blockbuster earnings Wednesday. Glencore’s adjusted earnings before interest, taxes, depreciation and amortization rose 60% to a record $34.1 billion, including $17.9 billion from coal mining.

Unlike rivals Anglo American (AAL.L) and Rio Tinto (RIO.AX), (RIO.L), London-listed Glencore is still mining coal. Activist investor Bluebell Capital Partners last year argued that Glencore should spin off the coal division, following in the steps of Anglo American. His plan is to hang on to coal and keep annual production steady at around 110 million tonnes up to 2025. Over the longer term, he’ll then start shutting coal mines, with at least a dozen closures planned before 2035. EBITDA from Glencore’s coal operations rose to $17.9 billion from $5.2 billion the previous year due to increasing prices.

☆ Over 50 injured as protests cause ‘nationwide chaos’ in Peru
▼ + stars: | 2023-01-21 | by ( ) www.nbcnews.com time to read: +3 min

Dozens of people were injured after tensions flared again on Friday night as police clashed with protesters in anti-government demonstrations that are spreading across Peru. In the country’s southern Puno region, some 1,500 protesters attacked a police station in the town of Ilave, Interior Minister Vicente Romero said in a statement to news media. By late afternoon, 58 people had been injured nationwide in demonstrations, according to a report from Peru’s ombudsman. In the Cusco region, Glencore’s major Antapaccay copper mine suspended operations on Friday after protesters attacked the premises — one of the largest in the country — for the third time this month. “All the rigor of the law will fall on those people who have acted with vandalism,” Boluarte said on Thursday.

☆ Glencore fined $314 million for ‘endemic’ bribery of African oil officials
▼ + stars: | 2022-11-03 | by ( Anna Cooban | ) edition.cnn.com time to read: +2 min

London CNN Business —Commodities giant Glencore (GLCNF) has been ordered to pay a record £281 million ($314 million) penalty by a UK court for bribing officials across Africa to gain access to oil. The penalty announced on Thursday includes a fine, legal costs and confiscation of the profit Glencore made from its bribes. It also found that, between 2012 and 2015, a Glencore trader and Nigerian agent withdrew a total $13.7 million in cash from Glencore’s Swiss cash desk. Glencore said in May that it had resolved investigations into separate bribery charges brought by authorities in the United States and Brazil. The company has set aside $1.5 billion to settle its legal cases, including the UK bribery action, it said Thursday.

☆ Glencore employees moved bribes cash by private jet, London court told
▼ + stars: | 2022-11-02 | by ( Sam Tobin | ) www.reuters.com time to read: +3 min

LONDON, Nov 2 (Reuters) - Employees and agents of a British subsidiary of mining and trading group Glencore (GLEN.L) used private jets to transfer cash to pay bribes to oil officials in West Africa, prosecutors told a London court on Wednesday. Glencore Energy UK Limited paid – or failed to prevent the payment of – millions of dollars in bribes to officials in five African countries, Britain's Serious Fraud Office (SFO) told Southwark Crown Court on the first day of a sentencing hearing. She told the court the unidentified Glencore employee was assisted by the company’s agent in Nigeria, from where the cash was withdrawn and transported to Cameroon often by private jet. Another unidentified employee also requested the withdrawal of $800,000 in cash from Glencore International AG’s cash desk in Switzerland before flying by private jet with a colleague to South Sudan, Healy said. Clare Montgomery, representing Glencore, said the company’s chairman Kalidas Madhavpeddi, who took up the post in 2021, was in court for the sentencing.

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