Overview
- Both miners confirmed preliminary discussions about combining some or all of their businesses, with no binding offer on the table nearly a year after earlier talks collapsed.
- Company statements indicate any transaction would likely be structured as Rio Tinto acquiring Glencore through an all-share purchase.
- A deal could create a mining giant valued well above $200 billion, with reports citing a potential enterprise value exceeding $260 billion.
- Argentina is a focal point given Rio Tinto’s lithium portfolio at Fénix, Olaroz, Rincón and Sal de Vida and Glencore’s copper plans at Alumbrera, MARA and El Pachón.
- Key challenges flagged by analysts include valuation gaps, Glencore’s sizeable coal business, cultural differences and expected regulatory scrutiny.