en.Wedoany.com Reported - Glencore (LON: GLEN) plans a secondary listing on the Australian Securities Exchange (ASX) in October, aiming to tap into the country's rapidly growing mining investment capital pool to support its copper growth strategy and bolster its competitiveness in potential acquisitions. The Switzerland-based mining and commodities trading giant hopes the listing will give it access to a broader base of mining investors and entry into Australia's A$4.4 trillion (US$3.1 trillion) pension market.
Glencore Chief Executive Gary Nagle said the company expects to qualify for inclusion in the benchmark ASX 200 index within 12 months of listing, which requires a market capitalization of approximately A$1.5 billion in Australia, and could subsequently meet the roughly A$5.5 billion threshold for the ASX 100 index. Following the announcement, Glencore shares rose 4.5% in London. Nagle noted that Australia's capital pool is substantial and local investors have deep knowledge of the mining sector, adding that the company has already received inquiries from several Australian funds.
The listing highlights the pressure facing London as a global mining financial center. According to Deloitte data, Australian pension assets are projected to grow to A$12.4 trillion by 2045, nearly tripling from current levels, making the country one of the world's largest and fastest-growing sources of institutional capital. Nagle said existing Australian shareholders face restrictions on overseas investments, and a local listing is an effective way to unlock this additional capital.
The listing plan comes just as the six-month standstill period following the collapse of merger talks between Glencore and Rio Tinto (ASX, LON: RIO) has ended. Jefferies analysts believe an ASX listing could make it easier for Glencore to launch large-scale acquisitions of Australian-listed companies, while RBC Capital Markets noted the move could also raise Glencore's profile should merger discussions with Rio Tinto resume in the future. Nagle emphasized that the company's near-term priority remains organic growth in its copper business.
Australian investors have generally welcomed the plan. AustralianSuper, the country's largest pension fund, said in May that a Glencore listing would be beneficial for both the exchange and the company. Michael Bell, Chief Investment Officer at Solaris Investment Management, told Reuters that the firm would welcome more major mining companies listing on the ASX. However, some fund managers have raised concerns that Glencore may struggle to build sufficient trading liquidity without issuing new shares or undertaking significant transactions. Other market participants noted that Glencore shares do not carry Australian dividend franking credits, the company has exposure to thermal coal operations, and it has experienced four workplace fatalities this year—factors that could weaken its appeal to local investors.
Glencore's move further intensifies concerns about the London Stock Exchange's ability to retain major mining companies. BHP relocated its primary listing to Sydney in 2022, while Rio Tinto last year rejected an activist investor motion aimed at simplifying its dual-listed structure and reassessing its London listing status. Glencore has for years reviewed alternative listing venues, including New York, and previously considered spinning off its coal business before abandoning that plan.
Additionally, Glencore said it has ceased business dealings with Singapore-based iron ore trader Radiant World after discovering issues with allegedly fraudulent shipping documents. Nagle stated that the company has made provisions for existing contracts with Radiant but did not disclose the amount. Radiant has denied any wrongdoing. Financial results show Glencore's first-half adjusted earnings reached US$10.1 billion, up 86% year-on-year, marking the company's second-highest half-year performance on record, driven mainly by higher commodity prices and strong trading profits from energy market volatility.
