LONDON: Mining giants Rio Tinto and Glencore confirmed they are in preliminary discussions about a deal that could see Rio Tinto acquire “some or all” of Glencore, a merger that would create the world’s largest mining company with a combined market value of nearly $207 billion.
The companies said late Thursday that the talks, first reported by the Financial Times, involve a potential all-share transaction. They provided no details on a potential premium, management structure or specific assets, and cautioned that no agreement on terms is certain.
It marks the second attempt at a deal in just over a year, after Glencore approached Rio Tinto in late 2024 for a merger that did not proceed.
The discussions reflect a global rush among miners to secure more copper and other metals critical for the energy transition and artificial infrastructure. This trend has fueled project expansions and a wave of takeover attempts, including the pending merger of Anglo American and Teck Resources to create another copper-focused leader.
Under U.K. takeover rules, Rio Tinto has until Feb. 5 to make a formal offer or walk away.
Market reaction was mixed. U.S.-listed shares of Glencore rose 6%, while Rio Tinto’s Australian-listed shares fell 6.3%, reflecting investor skepticism about the cost and complexity of a deal.
Analysts suggested a path to value exists, noting, “The structure of a possible merger between these two companies is unclear and would likely be complex, but we do believe there is a path to significant value creation for both.”
Rio Tinto, the world’s largest iron ore producer, has a market capitalization of about $142 billion. Glencore, a major base metals producer and trader, is valued at approximately $65 billion.