Is Glencore still going to buy RIO?

Thursday, 13 August 2015

Just a quick note in passing to observe that if GLEN is still going to buy RIO then it’s going to need an awful lot of debt to add to its awful lot of debt. The relative performance of the two shares is headed ever more in the wrong direction:

RIO is now worth 36b pounds while GLEN is under 24b pounds and carries a ludicrous 30b pounds in debt. As coal and copper keep falling, the only bid GLEN is going to be making is for survival.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.