The Swiss-based miner and trader is set to see its coal unit grow sharply after it completes a $6.9 billion deal to buy the majority of Canadian miner Teck’s one, but said it plans to list the combined assets separately in New York.
Glencore is already a top producer of thermal coal with output of around 110 million tonnes a year, and also has coking coal assets.
By buying Teck’s business, in a deal set to close by the third quarter this year, it will add 20 million tons of annual steelmaking coal capacity and create a powerhouse that analysts say should generate $5-$6 billion a year in free cash flow.
A greater focus on climate risk in recent years has seen a number of pension and investment funds, financiers and insurers cut support for coal companies, leading some including Rio Tinto and Anglo American to sell or spin theirs out.
While doing so can lead to a share price bump, critics say the assets are often shifted into the…
