Two of the world’s mining heavyweights are weighing up a merger that would potentially redefine the global resources industry.
The Financial Times reported that Glencore had resumed merger talks with Rio Tinto, having originally entered discussions in 2024. The consolidation of the two would create the world’s largest mining company.
According to FactSet, Rio Tinto’s market capitalisation stands at approximately US$145.32 billion ($217 billion), more than double Glencore’s valuation of roughly US$67.44 billion ($100 billion). Glencore has confirmed the discussions with news outlets.
“Glencore notes recent media speculation and confirms that it is in preliminary discussions with Rio Tinto plc and Rio Tinto Limited [together, ‘Rio Tinto’] about a possible combination of some or all of their businesses, which could include an all-share merger between Rio Tinto and Glencore,” the Swiss-based multinational said in a statement.
“The parties’ current expectation is that any merger transaction would be effected through the acquisition of Glencore by Rio Tinto by way of a court-sanctioned scheme of arrangement.”
Rio Tinto chief executive officer Simon Trott previously indicated his intention to restructure the company to inject close to $15 billion in cash proceeds. This latest deal could include an all-share merger between Rio Tinto and Glencore, according to the Dow Jones Newswire.
Rio Tinto’s statement “noted” the reports, but said: “There can be no certainty that an offer will be made or as to the terms of any such offer, should one be made.”
