Glencore Doubles Down in Chase of Copper Miner: The London Rush

Glencore’s M&A saga continued this morning as the commodities giant said it’s willing to raise its bid for Teck Resources, a Canadian miner that would give it control of copper mines at a time when the world is bracing for a shortage. London-based peer Anglo American, meanwhile, didn’t rule out a bid for Teck Resources assets itself.

(Bloomberg) — Glencore’s M&A saga continued this morning as the commodities giant said it’s willing to raise its bid for Teck Resources, a Canadian miner that would give it control of copper mines at a time when the world is bracing for a shortage. London-based peer Anglo American, meanwhile, didn’t rule out a bid for Teck Resources assets itself.

Here’s the key business news from London this morning:

In The City

Glencore Plc: The company may sweeten its bid for Teck Resources Ltd. and take the offer directly to shareholders if the board won’t engage, with just one week until a pivotal shareholder vote on the Canadian miner’s future.

  • The Swiss commodities giant wants to buy Teck and then create two new companies combining their respective metals and coal businesses
  • Teck is pressing ahead with an earlier plan to spin off its own coal mines — with an investor vote scheduled for April 26 — while dangling the possibility of a sale after the split

Anglo American Plc: The company sees a decline in its Chilean copper production as a setback rather than the new normal, as it works toward returning to higher levels of past years, Anglo’s Chile boss Patricio Hidalgo said in an interview. 

  • Anglo American is also keeping close tabs on renewed copper dealmaking to see if and when it could jump in, Hidalgo said, without ruling out a bid for Teck Resources assets
  • Bloomberg reported earlier this month that Anglo was among companies exploring potential bids for a chance to purchase Teck’s base metals business if the company successfully spins out its coal assets

Inflation: The UK rate remained stubbornly high in double digits in March, another surprisingly strong reading that will strengthen the case for more interest rate rises at the Bank of England.

  • The Consumer Prices Index rose 10.1% from a year ago in after a reading of 10.4% in February, the Office for National Statistics said
  • Economists had expected a slowdown to 9.8%

In Westminster

Russia-aligned hackers are attempting to damage or destroy the UK’s critical national infrastructure, a top British government official is expected to warn today.

Sales and construction completion levels for newly-built properties in London have plummeted to their lowest level in around a decade as buyers dry up for the capital, in the latest sign that the city’s housing market is in crisis.

That’s not bothering business tycoon Mike Jatania, who’s looking to sell a 12-bedroom mansion just west of London, in what would be one of the UK’s biggest ever country house deals.

In Case You Missed It 

“Private equity firms are fishing in the UK once again, and this time they’re dangling seemingly lavish 50%-plus takeover premiums,” writes Bloomberg Opinion’s Chris Hughes. “Investors should resist being bamboozled by bids that are less generous than they seem,” he says.

For decades, London was the main nexus of European finance, melding continental money with transatlantic ideas of what to do with it. Now, two years after Brexit became a reality, there’s been a clear shift across the Channel. The spoils are being shared by European Union cities, creating a more fragmented landscape. But if any city can make claim to being the bloc’s new pre-eminent hub, it’s Paris.

Looking Ahead 

Deliveroo Plc’s first-quarter trading update is due at 7 a.m. tomorrow, with profitability a key focus. Bloomberg Intelligence expects gross margins of European food delivery firms to slip further amid increasing competition and regulatory pressure to increase drivers’ pay. 

For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.

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