Yahoo Finance FTSE 100: Glencore stock up after Teck cancels key shareholder vote
Shares in FTSE 100 (^FTSE) company Glencore (GLEN.L) were back up on Wednesday after a key shareholder vote related to its takeover bid for Teck Resources was canceled.
The Swiss commodity trading and mining group has been pursuing Canada’s Teck Resources (TECK-B.TO), so far, to no avail.
However, Glencore’s bid has been kept alive after Teck didn’t go ahead with a vote on its restructuring plan to separate its metal and coal operations into two companies – which Glencore was against.
Takeover bid timeline
Essentially, Glencore said on 3rd April that it had made an $23bn (£18.43) offer to acquire Teck. However, Teck rejected it and said it planned to go ahead with its own plan to separate its metal and coal operations into two companies.
Today, Teck was supposed to put its plan to shareholders to vote on.
Meanwhile, Glencore said it will improve its offer in order to complete the acquisition but it wanted Teck’s shareholders to first reject the plan to separate its business, which now hasn’t gone ahead regardless.
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Glencore trading update
The company was also supposed to release its trading update for the first quarter today but it was brought forward in light of its bid for Teck.
The company said on 21st April that it was on course for another bumper year of trading commodities after the war in Ukraine sent prices and volatility soaring in 2022 – a pattern that has continued in commodities markets in 2023.
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Glencore said that trading profits this year will again beat its guidance range of $2.2bn to $3.2bn, based on its first-quarter performance.
Glencore chief executive, Gary Nagle, said: “Our Marketing segment continued to perform well through Q1 2023, particularly within energy products, such that extrapolating Q1’s Marketing Adjusted EBIT has us, once again, on track to exceed the top end of our $2.2-3.2bn per annum long- term guidance range.”
The mining company has exceeded its range for the last three years.
Glencore share price
Glencore shares were down 2.91% on Tuesday.
Jameel Ahmad, chief market analyst at CompareBroker.io, said: “The decline in its share price of just above 13% year-to-date at the time of writing might appear as disappointing to investors, but it should not discount the strength in Glencore’s performance over the last year.
“The share price reached all-time highs in early 2023.”
Ahmad said global economic demand is impacting commodities and will continue to be a factor that will shape Glencore's share price projections.
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