13/04/23 -"Miners’ animal spirits making a return(?)"
13/04/23 -"Miners’ animal spirits making a return(?)"
Glencore’s $23bn offer for Teck Resources has triggered a market buzz that this could mark a revival of sector-wide M&A. Since no major deals have materialised in base metals space since last market bottom, there’s also a lot of nervousness amongst investors as commodities / miners may not be very far away from top of the cycle.
While green transition is a compelling opportunity, it’s important to bear in mind past mistakes. Hence, to attain scale in greener metals, consolidation is inevitable as the business environment becomes increasingly difficult – both for day-to-day operations and new project developments. Also, the Glencore-Teck deal, irrespective of whether it happens or not, should result in some important takeaways for peers waiting on the sidelines.
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