RIO TINTO AND GLENCORE IN TALKS TO CREATE WORLD'S LARGEST MINER

LONDON, Jan 9 (Bernama-dpa) -- Mining giants Rio Tinto and Glencore said on Thursday they are in preliminary discussions about a potential combination of some or all of their businesses, potentially creating the world's largest mining company by market value.

The talks reportedly include the possibility of an all-share takeover of Switzerland's Glencore by London-based Rio Tinto, reported German news agency dpa.

The companies stressed that there is no certainty that a deal will be agreed or on what terms. Under UK takeover rules, Rio Tinto has until February 5 to announce whether it will make a formal offer.

The combination, if completed, would create the world's biggest mining company with a combined market value of more than US$200 billion, surpassing rivals such as Australia's BHP Group, which has a market capitalisation of roughly US$160 billion.

Both companies own significant copper assets, a metal in high demand amid the global energy transition, used in electric vehicles, wind turbines, solar panels and power grids.

This is the second round of merger talks between the two firms, after earlier discussions in 2024 failed over valuation disagreements. 

Analysts have cautioned that a merger faces hurdles, including differences in corporate culture and Glencore's coal-heavy business, which Rio Tinto has exited.

Both miners said any further announcements would be made as discussions progress.

--BERNAMA-dpa