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Glencore CEO, Gary Nagle, criticized European investors for prioritizing ESG over financial returns while defending the company’s proposal to list a spin-off of its coal business in New York.
Nagle stated that New York is more attractive than London for listing because American investors are “more pragmatic.”
He expressed concern about European investors prioritizing ESG and placing returns lower on the list of considerations. Nagle made these remarks at the Melbourne Mining Dinner in London.
Despite this, Glencore, the most profitable coal miner globally and one of the largest companies on the London Stock Exchange, has no plans to change its listing at the moment.
As part of its pursuit of acquiring Teck Resources, Glencore has proposed creating a New York-listed coal giant by merging Teck’s steelmaking coal business with Glencore’s extensive thermal coal production.
Nagle compared conversations with investors in the US and Europe, noting that American investors have a more pragmatic approach and prioritize yield.
Nagle’s comments mark a rare public appearance for him, almost two years after becoming Glencore’s CEO.
These remarks come at a time when more London-listed companies are considering moving their listings to New York due to higher valuations in certain sectors.
While Nagle did not rule out moving Glencore’s listing to New York entirely, he confirmed that it is not currently under active consideration.
He stated, “If we reach a point where we believe that we are not receiving sufficient recognition, valuation, and capital in London, then we would potentially consider it. But it is not something we are contemplating now.”
Earlier this year, Nagle made a $23 billion bid to acquire Teck Resources as part of a deal to split its business, which was ultimately rejected by Teck’s board.
Discussions about Glencore buying Teck’s coal business in cash are ongoing after the deal was rejected by Teck’s board.
However, an increasing number of Glencore shareholders have raised concerns about the company’s coal strategy. At the recent annual meeting, 30% of shareholders voted against the company’s climate progress report, up from 24% the previous year.
Nagle attributed the increase in dissent to an ESG-focused individual engaged in box-ticking exercises in their office.
He emphasized that the vote on the climate report received overwhelming support from the majority of shareholders, with 70% in favor.
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