Rio Tinto and Glencore, the world’s second-largest and one of its biggest copper producers, were in brief merger talks that have since ended. According to a source close to the matter, discussions between the two companies have stopped.
The potential merger has significant implications for both firms, with combined market value surpassing $158 billion, making it the largest ever mining deal. However, if Rio Tinto were interested in acquiring Glencore’s copper assets, analyst Ben Cleary suggests that it would require a substantial premium, potentially above 5 pounds per share.
Glencore’s commodity mix is seen as well-leveraged to Chinese stimulus, and its shares have jumped nearly 9% after the news broke. Rio Tinto’s U.S.-listed shares fell 0.5% in extended trading following the report.
Analysts note that a merger could provide significant savings for both companies, potentially up to $1 billion, by combining their marketing and sales operations. However, a deal may be difficult due to potential cultural clashes between the two firms, with Glencore’s more aggressive approach contrasting with Rio Tinto’s more conservative stance.
Source: https://www.reuters.com/markets/deals/rio-tinto-glencore-are-said-discuss-potential-merger-bloomberg-news-reports-2025-01-16