Rio Tinto, Glencore Revive Merger Talks
"Rio Tinto and Glencore have been engaging in preliminary discussions about a possible combination of some or all of their businesses, which could include an all-share merger between Rio Tinto and Glencore," Rio Tinto stated.
"The parties’ current expectation is that any merger transaction would be effected through the acquisition of Glencore by Rio Tinto by way of a Court-sanctioned scheme of arrangement."
Talks between the two companies had previously taken place in late 2024 but collapsed due to disagreements over valuation and concerns regarding Glencore’s coal operations.
Simon Trott, Rio Tinto’s CEO, outlined a restructuring strategy in August, focusing the company on three primary product segments – iron ore, aluminum, lithium, and copper – with the aim of cutting costs and unlocking up to $10 billion from its portfolio.
Following Anglo American’s merger with Canada’s Teck Resources in a $66 billion deal last September, a union between Rio Tinto and Glencore would further intensify merger and acquisition activity in the mining sector. The proposed combination is expected to create one of the world’s top five copper producers.
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