The global mining landscape is bracing for a seismic shift after Rio Tinto and Glencore confirmed they are in talks regarding a potential merger.
A tie-up between the two FTSE 100 titans would create the world’s largest mining entity, boasting a combined enterprise value of approximately £190bn.
The move comes amid a race to beef up critical metals, particularly copper, as the industry’s pivot toward an energy transition accelerates.
A successful deal would see the combined group surpass current industry leader BHP and begin to rub shoulders with the City’s juggernauts, including Astrazeneva, which currently leads the City with a value of £220bn.
“Rio Tinto and Glencore have been engaging in preliminary discussions about a possible combination of some or all of their businesses, which could include an all-share merger between Rio Tinto and Glencore,” the firms said.
The foundations of a merger centre on copper, after the price of the red metal hit record highs of $13,387 a tonne amid supply squeezes and stockpiling.
If Rio Tinto were to snap up Glencore, it would gain a coveted 44 per cent stake in the Collahuasi mine in Chile, one of the planet’s largest copper reserves.
Rio Tinto and Glencore would have to scout big name approval
A deal between the pair would likely flow through a Court-sanctioned scheme of arrangement, meaning both firms would require a 75 per cent majority vote and court approval.
Key power brokers in the vote would include former Glencore chief Ivan Glasenberg, who retains a 10 per cent stake and Qatar Holding, which holds an 8.5 per cent share in Glencore. Chinalco, China’s state-owned entity, is also Rio’s largest shareholder.
Rio Tinto’s stock has climbed 22 per cent over the last year to 143.06p, whilst Glencore has risen 13 per cent to 415.25p.
It marks another consideration of a deal for the two London-listed miners after discussions were said to have collapsed last year over valuations and the future of Glencore’s thermal coal assets.
Rio Tinto exited the coal sector in 2018, and integrating Glencore’s coal business would remain a complex hurdle with environmental, social and governance policies.
But recent consolidation in the sector, most notably the merger of Anglo American and Teck Resources, has piled pressure on Rio to secure its future in battery metals.
Under the UK Takeover Code, Rio Tinto has until 5pm on 5 February 2026 to announce a firm intention to make an offer or walk away.