Rio Tinto and Glencore are back in talks over a potential megadeal worth $260 billion
Rio Tinto
GlencoreLondon-listed shares rose 8% on Friday morning after confirming a possible $260 billion takeover offer Rio Tinto was on the table again.
Shares were recently up just over 8%. Meanwhile, London-listed shares of Rio Tinto fell 1.6% in open trading after Australian shares ended Friday’s session down 6.3%.
Glencore share price
“Rio Tinto and Glencore have held preliminary discussions regarding a possible combination of some or all of their businesses, which could include a full merger between Rio Tinto and Glencore,” Rio Tinto, the larger of the two companies, said in a statement early Friday morning.
“The parties currently anticipate that any merger transaction involving Rio Tinto’s acquisition of Glencore would occur by way of a court-approved agreement.”
If completed, the deal would create the largest mining company in the world. European mining stocks rose in early trading on Friday, with the Stoxx Europe Basic Resources Index gaining around 0.5%. Copper mining company Antofagasta jumped 3% while Anglo-Americans rose by 2.3%.
CNBC has reached out to both companies for further comment. Rio Tinto said it has until February 5 at 5 p.m. London time (12 p.m. ET) to either announce a firm intention to make an offer for Glencore or announce that it does not intend to make an offer.
Rio Tinto and Glencore discussed a merger in late 2024, but talks collapsed over issues such as the valuation and future of Glencore’s coal mines.
Back in August, Rio Tinto CEO Simon Trott announced a restructuring of the company. Trott promised to cut costs and free up up to $10 billion from its asset base by focusing on three core product groups – iron ore, aluminum and lithium and copper.
A deal between Rio Tinto and Glencore would add to recent M&A activity in the mining sector, following Anglo American and Canada’s Teck Resources agreed merged last September in a $66 billion deal. The merger will create one of the five largest copper producers in the world.
The renewed talks between Glencore and Rio Tinto were also driven by rising demand for copper, with prices for the red metal hitting an all-time high of $13,000 a tonne this week.
