{"id":46696,"date":"2026-01-09T11:35:32","date_gmt":"2026-01-09T11:35:32","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/09\/rio-tinto-and-glencore-discuss-mega-merger-as-copper-boom-tempts-miners\/"},"modified":"2026-01-09T11:35:32","modified_gmt":"2026-01-09T11:35:32","slug":"rio-tinto-and-glencore-discuss-mega-merger-as-copper-boom-tempts-miners","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/09\/rio-tinto-and-glencore-discuss-mega-merger-as-copper-boom-tempts-miners\/","title":{"rendered":"Rio Tinto and Glencore discuss mega-merger as copper boom tempts miners"},"content":{"rendered":"
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Rio Tinto and Glencore have confirmed they are in preliminary discussions over a potential deal that could create the world\u2019s largest mining company, with a combined market value exceeding $200 billion. <\/p>\n

The talks mark a renewed attempt at consolidation in a sector being reshaped by surging demand for copper<\/a> and other critical metals.<\/p>\n

Both companies said on Friday that they that they were in \u201cpreliminary discussions\u201d about a \u201cpossible combination of some or all of their businesses, which could include an all-share merger\u201d.<\/p>\n

\u201cThe parties\u2019 current expectation is that any merger transaction would be effected through the acquisition of Glencore by Rio Tinto by way of a court-sanctioned scheme of arrangement,\u201d Rio Tinto said in a statement. <\/p>\n

\u201cThere can be no certainty that an offer will be made or as to the terms of any such offer, should one be made.\u201d<\/p>\n

The announcement sent Glencore shares up nearly 9%, pushing them to their highest level since July 2024, while Rio Tinto\u2019s stock fell sharply, reflecting investor caution over the scale and complexity of a potential deal.<\/p>\n

A return of megadeals after years of restraint<\/h2>\n

The renewed talks underscore a shift in thinking among mining executives, who for much of the past decade avoided large acquisitions after a wave of expensive deals during the China-driven commodities boom left investors nursing losses. <\/p>\n

At the time, shareholders pushed miners to prioritise capital discipline, dividends, and share buybacks over empire-building.<\/p>\n

Now, however, fears that existing project pipelines are insufficient to meet future demand have brought dealmaking back into favour. <\/p>\n

Jefferies analysts said the discussions between Rio Tinto and Glencore signal that mining megamergers are returning, driven by structural changes in global metals demand rather than cyclical price spikes.<\/p>\n

Recent precedent supports that view. <\/p>\n

In September, London-listed Anglo American completed a $53 billion merger with Canada\u2019s Teck Resources, combining two major copper producers. <\/p>\n

Earlier, BHP Group\u2019s \u00a339 billion approach for Anglo and Glencore\u2019s \u00a316.6 billion bid for Teck were both rejected, highlighting how contested the race for quality assets has become.<\/p>\n

Copper sits at the heart of the talks<\/h2>\n

Copper is widely seen as the strategic prize behind the Rio-Glencore discussions. <\/p>\n

Prices hit an all-time high above $13,300 a tonne this week, with analysts warning of a potential supply shortfall of up to 10 million tonnes by 2040 as demand accelerates from electric vehicles, renewable energy infrastructure, data centres, and artificial intelligence.<\/p>\n

Rio Tinto exited the coal industry in 2018 and has been seeking to reduce its reliance on iron ore, which accounted for nearly 80% of its earnings as recently as 2024.<\/p>\n

“A combined company without coal would make most of its money from copper, followed by iron ore and aluminium,” Jefferies said.<\/p>\n

Berenberg analysts Richard Hatch and Jasper Mainwaring noted that Glencore has already begun preparing less-attractive units for potential divestment. <\/p>\n

Its coal and ferroalloys businesses have been placed into a separate vehicle that could be spun off, a move that would make a combined entity more attractive from a decarbonisation perspective while sharpening its focus on copper.<\/p>\n

RBC Capital Markets’ analyst Ben Davis said Glencore has been marketing itself for a sale for a while.<\/p>\n

“Examples include exploring a carve-out of its less-desirable units and touting its copper potential.” <\/p>\n

Glencore has been positioning itself as a copper-led growth company, with chief executive Gary Nagle saying in December that the group aims to become the world\u2019s largest copper producer.<\/p>\n

Currently the world\u2019s sixth-largest producer of copper and the biggest listed coal miner, Glencore plans to lift output through projects including the development of the El Pach\u00f3n copper mine in Argentina. <\/p>\n

If completed, these initiatives would raise its annual copper production to about 1.6 million tonnes by 2035, nearly double current levels.<\/p>\n

Possible deal structures and strategic hurdles<\/h2>\n

Several possible deal structures are being discussed by analysts, though all come with complications. <\/p>\n

Jefferies suggested one option could involve merging Rio Tinto\u2019s and Glencore\u2019s iron ore and coal operations into an Australian-listed entity, while housing base metals in a separate company. <\/p>\n

Such a structure, however, could prove difficult to execute and carry a significant tax burden.<\/p>\n

Another scenario is for Glencore to offload its coal business entirely before selling itself to Rio Tinto. <\/p>\n

Coal remains a key obstacle, given Rio\u2019s decision to exit the sector in 2018 as part of a broader decarbonisation push.<\/p>\n

Jefferies cautioned that Glencore is unlikely to agree to a deal without a premium, pushing back against the idea of a nil-premium merger. <\/p>\n

Any acquisition would therefore need to balance Rio\u2019s desire for copper growth with shareholder concerns about overpaying at a time when copper prices are at record levels.<\/p>\n

RBC’s Davis said the combination would unlock value for Glencore shareholders, but its coal business could be an obstacle to any deal.<\/p>\n

Rio Tinto’s investors’ reaction reflects deep scepticism<\/h2>\n

The immediate market response highlighted those concerns. <\/p>\n

Rio Tinto shares fell more than 6% in Australia and over 2% in London. <\/p>\n

Hugh Dive, chief investment officer at Atlas Funds Management, said the sell-off showed investors were uncomfortable with what he described as a strategic U-turn.<\/p>\n

He noted that Rio\u2019s new chief executive, Simon Trott, had recently promised to keep the business simple, only to now pursue a complex and risky acquisition. <\/p>\n

While supportive of greater copper exposure, Dive warned that large mining mergers have a poor track record, often struck at the top of the market and proving dilutive over time.<\/p>\n

He drew parallels with the BHP-Billiton merger two decades ago, arguing that many of the acquired assets ultimately delivered little value.<\/p>\n

Others were more measured. <\/p>\n

Andy Forster, senior portfolio manager at Argo Investments, said a deal could make sense if the terms were right, though he highlighted cultural differences as a key risk. <\/p>\n

Glencore\u2019s trading-driven, opportunistic culture could clash with Rio Tinto\u2019s more operationally focused approach, but Forster said some aspects of that mindset might benefit Rio if managed carefully.<\/p>\n

Leadership change adds another layer<\/h2>\n

The talks come just months after Rio Tinto overhauled its leadership team, appointing Simon Trott as chief executive. <\/p>\n

In early communications with staff, Trott promised fundamental changes, later outlining plans to cut costs and sell assets. <\/p>\n

His willingness to explore a transformational merger so soon into the role has surprised some investors.<\/p>\n

A sector at a crossroads<\/h2>\n

Whether the talks result in a deal remains uncertain, but their revival highlights a broader shift across the mining industry. <\/p>\n

With new mines taking years to develop and facing permitting and cost challenges, acquisitions offer a faster route to growth. <\/p>\n

At the same time, the risks of scale, integration, and valuation loom large.<\/p>\n

As the global economy pivots toward electrification and digital infrastructure, copper\u2019s strategic importance is reshaping boardroom priorities. <\/p>\n

For Rio Tinto and Glencore, the question is whether combining forces can deliver that future without repeating the mistakes of the past.<\/p>\n

The post Rio Tinto and Glencore discuss mega-merger as copper boom tempts miners<\/a> appeared first on Invezz<\/a><\/p>\n

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Rio Tinto and Glencore have confirmed they are in preliminary discussions over a potential deal that could create the world\u2019s largest mining company, with a combined market value exceeding $200 billion. The talks mark a renewed attempt at consolidation in a sector being reshaped by surging demand for copper and other critical metals. Both companies <\/p>\n","protected":false},"author":1,"featured_media":46697,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-46696","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=46696"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46696\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/46697"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=46696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=46696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=46696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}