Breaking up is easy to do: Potential ‘Inco’ IPO highlights mining sector’s new reality
There was a lot of concern among mining companies about being left behind if they didn’t take part in the consolidation wave. That led to plenty of poor decisions.
Today, the “bigger is better” mantra no longer exists. The industry is struggling to deal with weak commodity prices, and CEOs have much different priorities — lower costs, lower capital spending, strong liquidity and free cash flow growth.
That has forced them to look at what was unthinkable a few years ago: breaking apart the giant monoliths their predecessors created.