Huge Thumbs Down From Our Friends In Switzerland
1.Thumbs down to Glencore from the Peterson Capital network: Huge thanks to the 839 replies we received last week to our informal poll asking for your thoughts on Glencore’s proposed Teck takeover offer.
The result: an overwhelming “NO!” to the idea. Some of the strongest and most stringent comments against Switzerland-based Glencore’s offer were from our Swiss family offices and fund manager friends. Part of the response was a pro-Canadian nationalist sentiment, even from the Swiss, but the other factor clearly was support for Teck’s plan to spin out the Elk Valley Resources metallurgical (steel-making) coal unit. Nobody wants Glencore’s thermal coal (burned to generate electricity with high resulting carbon emissions) exposure, no matter how big the company is and what the synergies might be on a proposed merger.
And, more than a handful of our Swiss friends highlighted Glencore’s legal issues in Africa.
Bottom line: if it was up to our 1500+ Investment Advisors, hedge fund managers and family office friends across 28 cities in Canada and Europe, Glencore’s offer to Teck would be booted out the door. Let’s see if Teck shareholders agree with us on the April 26 vote.
The Glencore chairman, Kalidas Madhavpeddi. Source - The Guardian
2. There’s never been a better time to be in Canadian energy: that’s the message I heard in Calgary last week when I visited our friends at Carbon Infrastructure Partners.
Here’s a chart they passed along to me which shows how upstream capital spending has nose-dived over the last ten years, which global demand is now back up to pre-COVID levels and forecast to go higher. The end result has to be higher energy prices.
Gold, copper and renewable natural gas: we’ve got three great companies, involved in those sectors, covering eight cities in four days next week. If you can make any one of these meetings, please let us know.
Thank you so much for your continued support and interest.
Rick Peterson,
Chair