Overview
- Both companies say discussions are preliminary with no certainty of an offer, and the current expectation is a court‑sanctioned, all‑share scheme in which Rio Tinto would acquire some or all of Glencore.
- Reports peg a potential combined enterprise value at more than $260 billion, which would overtake BHP as the largest mining group if a deal proceeds.
- Shares diverged on the news as Glencore jumped roughly 8–10% and Rio Tinto fell about 3–6%, reflecting enthusiasm for Glencore’s upside and concern over price and deal risk for Rio.
- Key hurdles include valuation and whether Rio would take on Glencore’s thermal coal assets, which Rio exited in 2018, with analysts noting carve‑out options may be required.
- Copper is a central rationale as both groups seek scale in a market near record prices, and any deal would require major‑shareholder backing and regulatory scrutiny across key jurisdictions.