Glencore confirmed on Thursday that it is in early discussions with Rio Tinto about a potential combination that could involve some or all of their businesses, including a possible all-share merger. Under the proposed structure, Rio Tinto would acquire Glencore through a court-sanctioned scheme of arrangement. The combined group would have an enterprise value exceeding $260 billion, according to the Financial Times.
The talks represent a second attempt, following a failed approach in late 2024. Under UK takeover rules, Rio Tinto must either make a formal offer by February 5 or abandon the bid. Following the announcement, Glencore’s US-listed shares rose 6 per cent, while Rio Tinto’s shares fell 0.6 per cent.
Potential Mega Merger Details
The discussions restarted toward the end of 2025, according to a source familiar with the matter. At the last market close, Rio Tinto had a market capitalisation of about $142 billion, compared with roughly $65 billion for Glencore.
A transaction would create one of the world’s largest mining companies, with a diversified portfolio spanning copper, coal, base metals and iron ore. Mining groups have been seeking to expand their exposure to copper as demand accelerates due to the global energy transition.
Recent consolidation in the sector, including a $53 billion copper-focused deal involving Anglo American and Teck Resources, has increased pressure on rivals to consider large-scale combinations.
The structure under discussion would involve an all-share acquisition of Glencore by Rio Tinto through a scheme of arrangement. However, there is no certainty that any terms will be agreed. Under takeover rules, the deadline falls on the 10th business day at 3:30 p.m. London time.
Strategic Drivers And Market Reaction
Copper prices have reached record highs as demand linked to the global energy transition continues to rise, while prices of rare earth minerals have also surged.
Rio Tinto is the world’s second-largest mining company, while Glencore is the largest producer of coal and base metals. Glencore approached Rio Tinto in late 2024, but those discussions failed to produce a deal.
Pressure on the sector has increased following consolidation moves such as the Anglo American Teck Resources transaction. Against this backdrop, Rio Tinto confirmed it is engaged in preliminary discussions with Glencore.
Market reaction was mixed. Glencore shares rose 6 per cent, while Rio Tinto’s Australian-listed shares fell 6.4 per cent to their lowest level since July 2022. Any potential transaction would face scrutiny from shareholders and regulators, particularly on antitrust grounds, and would rank among the largest mining deals ever if completed.
Industry Consolidation Wave
Global mining companies are accelerating mergers, acquisitions and project expansions to secure copper and other critical minerals as prices reach record levels.
Consolidation pressure has increased following moves such as the $53 billion copper-focused merger involving Anglo American and Teck Resources. Against this backdrop, a potential combination of Rio Tinto and Glencore would create a mining group valued at between $207 billion and $260 billion.
Rio Tinto is the world’s leading iron ore producer, while Glencore operates a diversified portfolio spanning mining and commodities trading. Any transaction would face substantial regulatory and antitrust scrutiny, particularly in China, Australia and the United States. If completed, such a deal would significantly reshape the global mining industry.
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