Rio Tinto and Glencore are in preliminary talks about a possible merger, which would create the world’s largest mining company with a combined market value of over US$200 billion. This follows discussions in 2024 that were abandoned after a disagreement over valuations.
The companies said they are currently discussing a potential combination of some or all of their businesses, including an all-share takeover. “The parties’ current expectation is that any merger transaction would be effected through the acquisition of Glencore by Rio Tinto by way of a Court-sanctioned scheme of arrangement,” per a Rio Tinto statement.
Analysts have long questioned potential obstacles to a deal between the two companies. Glencore is one of the world’s largest coal producers – a sector Rio has already exited – and the two miners maintain very different corporate cultures. Even so, Bloomberg reported that people familiar with the matter say Rio is open to acquiring Glencore’s coal business if the talks succeed.
Rio Tinto said it has until 5.00 p.m. (London time) on February 5 to either announce a firm intention to make an offer for Glencore or announce that it does not intend to make an offer.