Trending: Glencore Buys Majority Stake in Rival's Coal Unit for $6.93 Billion
1330 GMT - Glencore is among the most mentioned companies across news items over the past 12 hours, according to Factiva data, after the Anglo-Swiss commodity miner bought a majority stake in the coal unit of Teck Resources. The deal--among this year's biggest in mining--values the steelmaking coal business, named Elk Valley Resources, at around $9 billion, as Glencore will pay $6.93 billion for a 77% stake. The world's biggest miner by revenue plans to spin off a combined coal company once it has sufficiently reduced its debt, which it expects to do up to two years after the transaction closes. "This is a striking move on the part of the diversified miner and commodities trader," AJ Bell investment director Russ Mould says in a market comment, adding the deal will do little for Glencore's public reputation, but clearly makes business sense. Japan-based steelmaker Nippon will hold a 20% stake after converting existing holdings in some of Teck's coal operations and paying cash, while South Korean steelmaker Posco will hold a 3% position after converting its holdings. Dow Jones & Co. owns Factiva. (christian.moess@wsj.com)
(END) Dow Jones Newswires
November 14, 2023 08:45 ET (13:45 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
Six Sports Betting and iGaming Stocks Trading at a Discount
-
4 Predictions for Stocks and the Economy for the Second Half of 2024
-
What Broadening Rally? AI Stocks Dominate Again In Q2
-
After Earnings, Is Nike Stock a Buy, a Sell, or Fairly Valued?
-
Worst-Performing Stock ETFs of the Quarter
-
Top-Performing Stock ETFs of the Quarter
-
Q2 In Review and Q3 2024 Market Outlook
-
5 Stocks to Buy for 3Q 2024
-
Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market
-
Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape
-
33 Undervalued Stocks
-
Utilities: Can the Stocks Keep the Rally Going?
-
Basic Materials: Following Index Decline, We See Many Long-Term Opportunities
-
Healthcare: Valuations Look Attractive In Most Industries
-
Financial Services: Amid Uncertainties, We See the Most Value In Banks and Credit Services
-
Consumer Cyclicals: Even With Anxiety Over Spending, We See Attractive Valuations