According to multiple media reports, miners Glencore (GLNCY) and Rio Tinto (RIO) are holding discussions about a possible merger.
Should a deal be reached, it would be the largest-ever merger in the global mining sector and create a massive company on the scale of industry leader BHP Group (BHP).
Rio Tinto is currently the world’s second-largest miner, with a market value of $103 billion U.S. Glencore is valued at $55 billion U.S.
By way of contrast, BHP Group has a market capitalization of $125 billion U.S.
Media reports say that Glencore and Rio Tinto have held early-stage talks about a potential merger, though it’s unclear if the talks are ongoing.
Neither company has commented publicly on the media reports or confirmed whether merger talks are taking place.
Any deal would be complex and face multiple hurdles given that Rio Tinto and Glencore have mining operations and interests that span the globe – from Australia to Canada and from Kazakhstan to Congo.
Still, talks of a merger come as the mining industry grapples with a wave of dealmaking and consolidation.
Miners are trying to achieve economies of scale as they chase fewer deposits of minerals and metals, notably copper, which is key to the world’s transition to clean energy.
This is not the first time the two mining companies have explored a possible combination. In 2014, Glencore proposed a merger with Rio Tinto, though the deal was ultimately unsuccessful.
More recently, Glencore made an unsuccessful bid to buy Canada’s Teck Resources (TECK.B) in 2023 but settled instead for that company’s coal mining business.
The stock of Rio Tinto is down 1% on news of the potential merger, while Glencore’s shares are up about 9% on the media reports.
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