Mining giants Rio Tinto and Glencore explore merger, initiate early discussions on potential major mining deal

¬ Australian Rio Tinto and Swiss Glencore have confirmed that both sides have started preliminary discussions on potential transactions, but have not yet made a formal takeover offer.

¬ According to UK takeover regulations, Rio Tinto must decide whether to participate in the bidding by February 5, 2026, at 5 PM London time.

¬ Analysts point out that if an agreement is reached, it would create the world's largest mining group, with a combined market value expected to approach $207 billion.

Global mining companies are facing dual pressures of a surge in demand for strategic metals and continued supply constraints, prompting large corporate groups to seek expansion and strengthen their investment portfolios.

In this context, the merger between Glencore and Rio Tinto could create the world's largest mining group.

Rio Tinto and Glencore confirmed this week that they have begun preliminary discussions on potentially merging part or all of their businesses.

Both companies emphasized that these negotiations are exploratory at this stage, and neither principle nor specific framework has been formally proposed.

Company Statements

Both companies stated in their respective statements that it is currently unclear whether these negotiations will lead to a transaction.

The companies also stated that any potential transaction still requires strict regulatory approval.

Glencore said that the current options being considered involve being acquired by Rio Tinto through a court-approved restructuring arrangement, which is common in UK transactions.

Rio Tinto confirmed the results of the preliminary discussions and stated that if it ultimately decides to submit a takeover offer, it reserves the right to adjust the form and composition of the potential consideration.

This deadline has become an explicit regulatory framework. Rio Tinto must announce whether it will formally submit a takeover offer or decide to terminate the acquisition by 5 PM London time on February 5, 2026.

African Assets and Market Background

Investors are increasingly focusing on copper and other key metals, which are essential for electrification, energy infrastructure, and energy transition.

Continuously rising copper prices, along with concerns over global supply growth, have significantly increased the strategic value of large mining assets.

In this environment, integration has become an important tool, allowing for the protection of asset size, sharing capital-intensive investments, and enhancing resilience against commodity cycle fluctuations.

Taking Canadian Teck Resources and British Anglo American as examples, these two multinational companies have been discussing a merger for months, aiming to form one of the world's top five copper producers, with an estimated market value exceeding $50 billion.

According to Reuters, Jefferies analysts said: "The structure of the potential merger between the two groups remains unclear and may be quite complex, but we believe there are paths for both parties to achieve significant value creation."

Reuters added that the transaction could create the "largest mining group in the world," with a combined market value expected to approach $207 billion.

Rio Tinto and Glencore have built diversified investment portfolios with complementary potential, including extensive business operations in Africa.

Glencore has become a leading player in the Democratic Republic of Congo's copper and cobalt industry, holding stakes in several mines in the southern part of the country.

In 2024, its Kamoto Copper Company and Mutanda Mine produced a total of 224,500 tons of copper and 35,100 tons of cobalt.

Rio Tinto operates bauxite and iron ore businesses in Guinea, with its Simandou project scheduled to come online by the end of 2025, making it one of the largest iron ore development projects in the world.

The company also operates in South Africa and Madagascar through its mineral sands and ilmenite businesses.

In December 2025, this Anglo-Australian mining company announced plans to raise between $5 billion and $10 billion through asset portfolio assessments, aiming to divest non-strategic or inefficient assets and refocus on core businesses such as iron ore, aluminum, lithium, and copper.

Sources: ecofinagency

Original: toutiao.com/article/1853846572654660/

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