Australian mining major Rio Tinto has confirmed that it is in talks to take over Swiss group Glencore, a move that could create the world’s largest mining company.
The companies said they have been engaging in preliminary discussions about a possible merger of some or all of their businesses, which could include an all-share merger.
Both companies expect that any merger transaction would be affected through the acquisition of Glencore by Rio Tinto through a scheme of arrangement.
There is no certainty that current discussions will result in a deal and Rio Tinto has until February 5 to make an offereither announce to make an offer for Glencore or not.
The talks come after both companies walked away from a merger deal in 2025 after they failed to agree on valuation.
The merged entity could be worth more than US$200 billion and would be particularly strong in copper, ABC News reported.
Glencore is one of the world’s largest copper producers, while Rio Tinto owns 30 per cent of the world’s biggest copper mine in Chile and controls what will be the world’s fourth biggest mine, Oyu Tolgoi in Mongolia.
“A Glencore-Rio Tinto merger can spur a mining behemoth with market capitalisation exceeding $US200 billion, yet the ultimate size might be smaller, as a clean, all-asset combination appears improbable,” according to Bloomberg analysts Alon Olsha and Grant Sporre.
The analysts noted that Rio Tinto is after Glencore’s copper assets but not its coal portfolio, which it could carve out.
Rio Tinto divested the last of its coal mines in 2018.
