Analysts eye M&A angle in Glencore’s Sydney listing

AUSTRALIAN analysts say Glencore’s plan for a secondary listing on the ASX could pave the way for future mergers and acquisitions.The listing plan comes as a six-month standstill on merger talks with Rio Tinto expires, Reuters reports. “This listing could also make it easier for Glencore to pursue large M&A with Australian-listed companies,” Jefferies analysts said.While Glencore CEO Gary Nagle maintains the priority is organic copper growth, analysts believe an ASX presence would raise Glencore’s profile among local investors and align its shareholder base more closely with Rio’s.RBC Capital Markets analysts said Glencore was “looking at an Australian listing to access mining-friendly investors, or perhaps at least make their name more well known if Rio Tinto and Glencore decide to have a go again at merging.” Nagle said a secondary listing would make no difference to any potential Rio tie-up.Securing an $87bn global miner and trader would be a coup for the ASX, whose resources sector has thinned through consolidation; the exchange said it was “delighted” by Glencore’s choice.Analysts note Australian investors have had fewer domestic copper opportunities as dealmaking has reduced options.Glencore aims to lift copper output to about 1.6 million tons by 2035 from under 870,000t this year. Nagle said Australia offered “a highly sophisticated investor base,” with the listing requiring no capital raising and costing Glencore relatively little.The post Analysts eye M&A angle in Glencore’s Sydney listing appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com