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Rio Tinto, Glencore in Early Talks on All-Share Merger to Create Mining Leader

BHP is not preparing a counterbid, according to people familiar with its plans.

Overview

  • Glencore confirmed preliminary discussions and said the current expectation is for Rio Tinto to acquire it via a scheme of arrangement.
  • Analysts estimate a combined value in the roughly $200–$300 billion range, with some forecasts that Glencore investors could hold about 40–45% if Rio shares are the currency.
  • Copper is the central rationale as miners race to secure supply for electrification and AI data centers, with Glencore’s project pipeline viewed as a key draw for Rio.
  • Glencore’s substantial coal business remains a major hurdle for shareholder support and deal design, after Rio exited coal in 2018 and as potential carve-outs are weighed.
  • Any deal would face heavy antitrust scrutiny across multiple jurisdictions, while the initial market reaction saw Glencore shares rise roughly 8–10% and Rio fall about 6%.