Overview
- Both companies say discussions are preliminary and any deal would likely be structured as Rio Tinto acquiring Glencore via a scheme of arrangement, with scope for flexibility.
- Analysts frame the strategic motive as scaling exposure to transition metals such as copper, given tightening supply and rising demand from electrification and AI.
- A tie-up could create the world’s largest miner with a combined market value north of $200 billion, based on current market capitalizations reported for the two groups.
- Glencore’s thermal coal assets are seen as a major obstacle for Rio Tinto, which exited coal in 2018, raising potential ESG concerns and the risk of shareholder pushback.
- Glencore shares jumped nearly 14% intraday on the JSE before closing up about 10.5%, as commentary highlighted possible heavy equity issuance and steep synergy needs if a deal proceeds.