Rio Tinto and Glencore Resume Talks on Potential $260bn Mining Mega-Merger
Rio Tinto and Glencore have reopened preliminary merger discussions that could create a $260bn-plus global mining leader; talks remain early with no certainty on terms or outcome.
Overview
Rio Tinto and Glencore have resumed preliminary discussions about a possible all-share merger or acquisition that could form the world’s largest mining company.
Renewed talks follow collapsed negotiations in 2024 and recent industry consolidation, with the companies disclosing preliminary discussions on Jan. 8–9, 2026.
A combined enterprise value would exceed $260bn, potentially surpassing BHP and expanding scale across iron ore, copper and other transition metals vital for electrification and AI.
Key unresolved issues include valuation, leadership of the combined group, and the future of Glencore’s coal and trading businesses, along with regulatory and shareholder approvals.
Markets reacted swiftly—Glencore shares rose while Rio’s fell—and analysts say consolidation aims to secure critical metal supplies amid record copper prices and projected long-term shortages.
Analysis
Center-leaning sources frame the revived Glencore–Rio Tinto talks as an economically driven necessity by emphasizing surging demand and 'record' copper prices, citing analysts and the Financial Times while omitting dissenting voices (regulators, communities, competition concerns). Language like 'looming supply shortfall' and linkage to energy transition creates urgency favoring consolidation.
Sources (4)
FAQ
According to Glencore’s statement, the current expectation is that any transaction would be an all‑share merger implemented via Rio Tinto acquiring Glencore through a court‑sanctioned scheme of arrangement, meaning Glencore would be bought by Rio Tinto in share form rather than cash.
Based on the companies’ current market values, a merged Rio Tinto–Glencore entity would have an enterprise value above $260 billion, which would make it the world’s largest listed mining company and put it ahead of current sector leader BHP in overall scale.
Under UK takeover rules, Rio Tinto has until 5:00 p.m. London time on 5 February 2026 to either announce a firm intention to make an offer for Glencore or state that it does not intend to make an offer, unless this deadline is extended with the Takeover Panel’s consent.
People familiar with the talks say the renewed push reflects Rio’s concern that its iron‑ore‑heavy portfolio could be left behind amid a wave of copper‑focused M&A and record copper prices, with a deal offering greater exposure to copper and other transition metals seen as critical for electrification and AI‑related demand.
Key sticking points include agreeing on valuation and any takeover premium, deciding who would lead the combined group, handling Glencore’s large coal business amid sustainability concerns, and addressing regulatory scrutiny over its trading arm’s past corruption issues and politically sensitive assets in countries such as Congo and Kazakhstan.
History
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