Commodities giants Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and Glencore (LSE:GLEN,OTCPL:GLCNF) said on Thursday (January 8) that they have restarted talks about a potential business combination.
The two major miners spoke previously back in 2024, but failed to reach an agreement.
This time around, they say their preliminary discussions are centered around a combination of some or all of their businesses; this could include the acquisition of Glencore by Rio Tinto.
The news was first reported by the Financial Times, with both companies confirming the story via press release shortly thereafter. According to the news outlet, the combination of Rio Tinto and Glencore would create a massive mining company with an enterprise value north of US$260 billion.
The two firms have said there’s no guarantee that any transaction will go through.
However, it’s worth noting that Rio Tinto has changed leadership since the 2024 talks ended, with Simon Trott now at the helm. For its part, Glencore has reorganized its coal assets.
The Financial Times also notes that Glencore CEO Gary Nagle spoke last month about the importance of size in the mining industry, saying that bigger companies have various advantages.
“It makes sense to create bigger companies,” the executive explained to reporters. “Not just for the sake of size, but also to create material synergies, to create relevance, to attract talent, to attract capital.”
Regulations require Rio Tinto to announce its intentions either way by February 5 of this year.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.