Glencore ditches plan to spin off coal business after shareholders object

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Commodities trader and miner says investors in favour of retaining highly profitable but polluting division

Glencore has ditched a radical plan to spin off its coal business after shareholders objected, in one of the most striking examples of the shift in sentiment towards fossil fuels. The FTSE 100 company last year set out a plan to list its highly profitable but polluting coal business in New York, a move that chief executive Gary Nagle said at the time would benefit shareholders. However, on Wednesday Glencore said it would instead keep the business after a planned consultation with investors.

Glencore, which counts the Qatar Investment Authority and former chief executive Ivan Glasenberg among its largest investors, said it had canvassed the view of two-thirds of its shareholder base on the spin-off. Keeping coal puts Glencore at odds with the strategies pursued by some of its major rivals. Anglo American has exited from thermal coal but still produces steelmaking coal, while Rio Tinto has left the business completely.

 

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Glencore Scraps Plan to Spin Off Its Coal BusinessGlencore has decided to retain its coal business following a consultation process with shareholders, who expressed a preference for keeping the unit intact.
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