Rio Tinto in preliminary talks to merge with Glencore
Glencore is in preliminary talks to be acquired by Rio Tinto as part of a $300 billion mega-merger that would create the world’s largest miner.
Both companies confirmed the talks on Friday, following a report in the Financial Times.
The two held brief merger talks in late 2024 but went nowhere. Rio Tinto has since appointed a new chief executive, Simon Trott, who will take over in August.
Current talks include Rio Tinto acquiring Glencore in an all-share transaction.
Glencore is an Anglo-Swiss commodity trading and mining company headquartered in Switzerland and listed on the London Stock Exchange.
“There can be no certainty that an offer will be made or, if made, the terms of such an offer,” Rio Tinto said in a statement on Friday. he said.
Under the UK’s merger law, Rio Tinto now must make a definitive offer by February 5 or abandon any transaction.
Glencore’s current market capitalization of Stg48.8 billion ($97.8 billion) places it among the world’s top 10 mining companies.
Rio Tinto ranks second after BHP with $200 billion.
Both Glencore and Rio Tinto are major copper producers, and rising demand for the red metal is likely one of the drivers of the potential deal.
Glencore is also one of Australia’s largest coal producers, with mines in NSW and Queensland employing more than 10,000 people.
Rio Tinto exited the thermal coal business in 2018, mostly by selling its coal mines to Glencore.
It’s unclear whether Rio wants to return to the coal mining business, but in 2025 Glencore has shifted its coal mines in Australia, Canada, South Africa and Colombia to an Australian subsidiary that is easy to spin off or divest.
Rio shares fell 4.9 percent to $145.15 in the first hour of Friday.
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