Glencore has confirmed it is in preliminary discussions with Rio Tinto regarding a possible combination of some or all of their businesses, following recent media speculation. The talks could include an all-share merger, with the current expectation that any transaction would be structured as a court-sanctioned scheme of arrangement under which Rio Tinto would acquire Glencore.
Both companies stressed that discussions are at an early stage and there is no certainty that a transaction will be agreed, nor clarity on its final structure or terms.
Analysts suggest a potential transaction could involve combining the two groups’ iron ore and coal businesses into a single Australian-listed entity. Glencore’s extensive trading and logistics expertise could be leveraged to optimize the distribution of Rio Tinto’s iron ore, potentially streamlining supply chains for global steel producers. While Rio Tinto exited coal several years ago, Glencore remains the world’s largest shipper of thermal and metallurgical coal. A merger could effectively reunite iron ore and coking coal assets under one roof, consolidating control over the two core raw materials used in traditional blast-furnace steelmaking.
If completed, the tie-up would rank among the largest deals in mining history, creating a group with a combined market value exceeding USD 200 bln and positioning it as a major rival to BHP Group, amid intensifying consolidation across the sector driven by demand for future-facing commodities such as copper.
Rio Tinto is a traditional mining major centered on large-scale extraction and processing, and is the world’s largest producer of iron ore, mainly from Australia’s Pilbara region, alongside major interests in aluminum, copper and lithium.
Glencore, by contrast, operates a hybrid model that combines industrial mining with a global trading arm, and is a leading producer of copper, cobalt, nickel, zinc and ferroalloys, while also remaining one of the world’s largest exporters of thermal coal.
