Insiders have revealed that Rio Tinto Group and Glencore are in discussions about a potential business merger, which could become the largest acquisition in the mining industry's history. The discussions are reportedly in the preliminary stages, and it remains uncertain if they will continue. Representatives from Rio Tinto have declined to comment, and Glencore's spokesperson was unavailable for immediate response.
Rio Tinto, the world's second-largest mining company, has a market value of approximately $103 billion, while Glencore is valued at $55 billion. A merger between these two companies could create an industry giant, surpassing the current leader, BHP Group, with a market value of about $126 billion.
Following the news, Rio Tinto's American Depositary Receipts (ADRs) saw a decline, while Glencore's shares experienced an increase. In recent years, the mining industry has witnessed a surge in mergers and acquisitions, driven by major mining companies' desire to expand into the copper sector, which is crucial for global decarbonization efforts. Both Glencore and Rio Tinto possess some of the world's best copper mines.
