Freeport CEO Sees More Copper Deals After Glencore’s Teck Bid

(Bloomberg) — Glencore Plc’s proposed $23 billion takeover of Teck Resources Ltd. is part of a copper consolidation trend that will yield more deals as investors demand growth in an industry struggling to tap new deposits, according to the world’s top publicly traded producer.

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More deals are likely to emerge, Freeport-McMoRan Inc. Chief Executive Officer Richard Adkerson said in an interview Tuesday. Shareholders once focused on returns are now pushing companies to expand output as the shift away from fossil fuels boosts demand and new mines get trickier and pricier to build, he said.

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“Copper is a scarce commodity and when opportunities to grow in the copper business emerge for whatever reason I think you’ll see companies moving to take advantage,” he said. Recent deals are “indications of what is likely to be part of the landscape of our industry going forward.”

Freeport, which has strengthened its balance sheet after an ill-fated foray into the oil business a decade ago, keeps an eye out for deals but is focused on its own projects, Adkerson said.

In the near term, demand for copper remains strong, Adkerson said, and “we are increasingly positive on the longer-term outlook.”