US EditionBHP Expected to Wait Out Rio Glencore Deal Talks as Copper M&A Heats Up
The $200 billion merger could create the world’s largest mining company focused on copper amid a forecast 10 million-ton annual shortfall by 2040, analysts say.
- Last week, Glencore and Rio Tinto confirmed early-stage talks about a possible $200 billion merger, expecting Rio Tinto to acquire Glencore via a scheme of arrangement.
- The push into copper is driven by Rio Tinto's concern that its iron-ore-heavy portfolio risks being left behind amid copper-led mergers, while S&P Global warns of a 10-million-ton shortfall by 2040.
- On Friday, markets reacted with Glencore shares in London jumping nearly 8.5% while Rio Tinto closed 6.27% lower, and investors noted their complementary copper assets.
- Regulators and shareholders will scrutinize Glencore's trading arm, while coal remains contentious as Rio exited coal in 2018 but may keep Glencore's coal assets.
- Dealmakers are keeping structure flexible as broader consolidation into transition metals positions larger groups to win, with carve-outs and wriggle room in public announcements.
16 Articles
16 Articles
BHP Expected to Wait Out Rio Glencore Deal Talks as Copper M&A Heats Up
Australia's mining giant, BHP Group ( NYSE:BHP), will wait out talks over the proposed merger by the United Kingdom’s Rio Tinto Group (NYSE:RIO) and Switzerland-based commodity trading and mining company Glencore Plc. (OTCPK:GLCNF), people familiar with the matter told Reuters on Monday. With a market cap of $162 billion, BHP was viewed as the most likely spoiler of Rio's bid for Glencore that would create the world's largest mining company. How…
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Potential Mining Superdeal Leaves A Mixed Reaction - Glencore (OTC:GLCNF), Rio Tinto (NYSE:RIO)
Heavyweight miners Glencore (OTC:GLCNF) and Rio Tinto (NYSE:RIO) made headlines last week after confirming early-stage talks about the mega merger. The $200 billion deal, which has eluded the market for nearly two decades, now looks closer than ever. Glencore chief executive Gary Nagle has previously described a combination with Rio as "the most obvious deal in mining," a view long championed by his predecessor Ivan Glasenberg, according to Bloo…
Will Glencore-Rio Tinto be the deal of 2026?
The year has barely kicked off and we already have a blockbuster deal on the table to salivate over. Will it happen or will it fizzle out? Either way, you can be sure that the Glencore-Rio Tinto opportunity is going to be a feature of some of the major headlines this year.
Rio Tinto may keep Glencore coal
Image: Tigarto/Adobestock.comRio Tinto could retain Glencore’s coal business if ongoing merger talks succeed, marking a notable reversal from Rio’s 2018 exit from coal. According to reports from Bloomberg, the move removes a major obstacle to a potential deal, allowing negotiations to focus “more squarely on valuation, deal structure and governance of a combined entity”. One scenario reportedly under consideration would see Rio Tinto acquire Gle…
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