Overview
- Rio Tinto and Glencore confirmed they are exploring a combination of some or all businesses, with an expected structure in which Rio Tinto would acquire Glencore via a share purchase.
- No binding offer has been made, and under UK takeover rules Rio Tinto must state its intent by Feb. 5 or publicly withdraw for six months.
- Reporting based on people familiar with the talks says Rio Tinto could keep Glencore’s coal operations if a deal proceeds, marking a possible reversal of Rio’s 2018 coal exit.
- A merger would create a mining giant to rival BHP and expand exposure to copper as the metal trades near record highs and sector consolidation accelerates.
- Argentina stands to be a focal point given Rio Tinto’s lithium operations at Fénix and Olaroz and its Rincón investment under the RIGI regime, alongside Glencore’s copper pipeline including the Alumbrera restart planned for 2028, MARA and El Pachón.