This report does not constitute a rating action. PARIS (S&P Global Ratings) Nov. 15, 2023--S&P Global Ratings today said that Glencore's intention to acquire 77% of Teck's steelmaking coal assets, Elk Valley Resources (EVR), for $6.93 billion has no impact on the rating on Glencore (BBB+/Positive/A-2). This is explained by the following: Financial capacity--Glencore's net debt is currently below its $10 billion target, and we expect the company to build up cash until completion of the transaction. Based on current commodity prices, Glencore's credit metrics should remain sound, assuming debt of $10 billion. Our rating already assumes that Glencore's noncore coal business will be divested or depleted in the coming years. Consequently, the transaction provides better visibility on the company's
