Rio Tinto, Glencore announce preliminary merger talks to create mining giant

Rio Tinto and Glencore person announced they are successful preliminary merger discussions to signifier the world’s largest mining group, which would person a combined marketplace capitalisation of astir $207bn.

Mining companies worldwide are racing to grow their holdings successful metals specified arsenic copper, which are poised to summation from the displacement to cleaner vigor and the increasing request driven by AI, reported Reuters.

Talks betwixt Rio Tinto and Glencore travel connected the heels of a bid of enlargement projects and acquisition efforts crossed the mining industry.

Among these is the planned merger of Anglo American and Teck Resources, which is expected to signifier a large copper-focused powerhouse.

Both companies person released lone sparse accusation astir however the woody mightiness beryllium structured, including which assets could beryllium portion of it.

They indicated that the existent program is for an all-share acquisition successful which Rio Tinto would bargain “some oregon all” of Glencore.

The companies besides stressed that determination is nary warrant they volition scope statement connected immoderate presumption oregon proceed to a ceremonial bid. This follows an earlier study by the Financial Times revealing that merger discussions had resumed.

In enactment with UK takeover rules, Rio Tinto has until 5 February to either taxable a ceremonial connection for Glencore oregon authorities that it does not mean to prosecute the transaction.

Investor effect to the quality of the Rio Tinto-Glencore talks was mixed. Glencore’s US-listed shares climbed astir 6% erstwhile the discussions were confirmed.

By contrast, Rio Tinto’s shares connected the Australian speech fell 6.3%, signalling capitalist doubts astir the transaction and worries that the institution mightiness beryllium overpaying.

Atlas Funds Management main concern serviceman Hugh Dive, a Rio Tinto shareholder, said: "The stock marketplace tells you what you privation to know. Investors are not blessed with this.

“I similar the conception of going to copper, but the grounds is dreadful for the large majors making acquisitions oregon adjacent mergers. We person seen a batch of these large mergers hap astatine the apical of the market, and they extremity up being precise dilutive implicit time.”

"Rio Tinto, Glencore denote preliminary merger talks to make mining giant" was primitively created and published by Mining Technology, a GlobalData owned brand.

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