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Glencore and Rio Tinto (ASX:RIO) have returned to the deal room early in CY26, holding “preliminary discussions” on an all-share merger between the two that would instantly make them the world’s largest mining company.
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The bumper talks, first reported late on Thursday before being confirmed by a Glencore update (which was forwarded by Rio on the ASX wire), are the latest twist in a back-and-forth negotiation that began in 2014. Then, Rio turned down a merger proposal from Glencore, though it left the door ajar.
Years on, CY25 was where it swung wide open again – the two global mining heavyweights held serious talks through last year, though they eventually hit another impasse and dragged the multi-billion dollar move back off the boil.
Now today, the heat’s been turned back up; Glencore confirmed it, and Rio, have recently been holding “preliminary [talks on] a combination of some or all of their businesses, which could include an all-share merger.”
The mooted structure for the mega-merger appears to be Rio Tinto gobbling up Glencore; that was confirmed by the Aussie company in its January 9 release.
As noted, this would instantly create a mining superpower on the global stage, especially when it comes to copper. Glencore produces a million tonnes annually, while Rio commands an 800K-tonne production flow each year. Good timing to control as much as 7% of the global demand, with copper at an all-time high.
(Checking the till on that one, benchmark three-month prices for the red metal have risen nearly 7% in London already this year, to $13,387.50 a tonne.)
Should the deal go through – and that’s no guarantee considering how often the two heavyweights have been split on valuation – it would see the new company easily overtake BHP Group (ASX:BHP) in the mining world.
It would also echo a blockbuster agreement made between Teck Resources and Anglo-American in CY25, which will soon see them come together as “Anglo Teck.” That freshly-merged company, self-described as a “global critical minerals champion,” is currently wading through European red tape.
Into trade this morning, RIO shares are $152.63/ea.
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