It is reported merger talks between Rio Tinto and Glencore are closer than ever, with both companies exploring potential combinations to create the world’s largest miner.
Sources told Bloomberg the current round of negotiations is the most serious yet in nearly two decades, even as talks remain at an early stage.
Previous discussions collapsed over valuation, leadership and cultural differences. In 2024, Glencore had sought a merger ratio giving its shareholders roughly 40 per cent of the combined entity, implying a premium of more than 25 per cent, while also pushing for chief executive officer Gary Nagle to lead the merged company.
It is reported that positions on both sides have softened: Rio may now be open to paying a takeover premium and Glencore is said to be taking a more pragmatic stance on management arrangements.
Investor resistance to coal exposure, a major concern in earlier talks, has also eased, with Bloomberg reporting that Rio is open to retaining Glencore’s coal business. The deal is expected to be structured as a court-sanctioned acquisition of Glencore by Rio Tinto.
Strategically, copper remains at the heart of the discussions. Rio has been building its copper portfolio under chief executive officer Simon Trott, including Oyu Tolgoi, Resolution Copper and Nuevo Cobre.
Glencore has also substantially built its copper business over the past decade, holding major mines, refineries and smelter operations globally. This includes its Mount Isa operations, which sit at the heart of Glencore’s zinc-lead-silver and copper processing footprint across north Queensland.
A combined business would create a global leader in copper, while Glencore’s positions in iron ore and aluminium could complement Rio’s existing projects such as Simandou in Guinea and Rhodes Ridge in the Pilbara.
“Glencore have a lot of brownfield and greenfield copper projects and Rio don’t, but Rio have the expertise to build them and run them,” Ninety One portfolio manager George Cheveley told Bloomberg.
If realised, the merger would not only create the world’s largest mining company but also reshape the global industry, setting a new benchmark for scale, portfolio balance and execution capability.
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