Rio Tinto, Glencore Merger Could Trigger A Significant Asset Spin-Off

Rio Tinto Plc (NYSE:RIO) and Glencore Plc (OTC:GLCNF) are weighing a potential spin-off of coal assets. Despite initial optimism, coal remains one of the complex obstacles to combining two vastly different portfolios and investor bases under one roof. Thus, moving those assets in a separately listed Australian vehicle is one of the discussion points amidst a $200 billion merger. Multi-Billion SpinoffAccording to the Australian Financial Review, Glencore's coal operations make roughly 8% of the combined group's $45.6 billion in EBITDA. That makes them worth tens of billions of dollars on a standalone basis.Those assets span New South Wales and Queensland, as well as operations in central Africa and Latin America. They are highly cash generative, but increasingly difficult to house within a company seeking broad institutional support.One possible solution under discussion is carving out coal into an ASX-listed ...Full story available on Benzinga.comWeiter zum vollständigen Artikel bei Benzinga Weiter zum vollständigen Artikel bei Benzinga