Glencore yields to shareholder will: Coal business remains within the company

Following intensive consultations and thorough internal analysis, Glencore has decided to withdraw its plan to spin off its coal business after shareholders expressed strong opposition to the proposal. "After extensive discussions with our shareholders, whose views were very clear, and our own analysis, the board believes that retaining the business represents the least risky path to value creation for Glencore shareholders," said Kalidas Madhavpeddi, chairman of Glencore, on Wednesday. The FTSE 100-listed company reported that more than 95 percent of the shareholders surveyed supported the retention of the coal business. This segment has proven to be a significant profit driver in recent years, amid the resurgence of the environmentally harmful fossil fuel. The abandonment of the spin-off plan coincided with the announcement of Glencore's financial results. For the first half of the year, core earnings of $6.3 billion were reported, which met analysts' expectations. Revenues amounted to $117 billion.