Rio Tinto in Talks to Acquire Glencore, Potentially Creating World’s Largest Resources Company

Mining giant Rio Tinto is in discussions to acquire Swiss‑based Glencore, a move that could create the largest resources company on the planet. Early talks confirm that one option under consideration is a full takeover, where Rio would purchase all Glencore shares through a formal scheme of arrangement.

If completed, the combined entity could exceed US$200 billion in value, bringing together Rio’s global mining operations including major iron ore assets in Western Australia’s Pilbara with Glencore’s vast mining and commodities trading network.

Market Reaction and Strategic Value
News of the discussions triggered a sharp market response, with Rio Tinto shares falling more than 5.5% on Friday morning.

A merged company would be particularly dominant in copper, a commodity experiencing surging global demand.

Glencore ranks among the world’s top 10 copper producers, with major operations including Mt Isa in Queensland.

Rio Tinto holds 30% of Escondida in Chile the world’s largest copper mine and controls Oyu Tolgoi in Mongolia, set to become the fourth‑largest once fully operational.

Analysts note that while a full merger could create a mining behemoth, Rio may be reluctant to absorb Glencore’s coal assets or its extensive commodities trading arm, which may not align with Rio’s operating culture.

Rio exited coal entirely in 2018, while Glencore remains the world’s largest coal producer, though it has previously considered spinning off its coal division, including its 13 Australian mines.

Deadline Approaching Under UK Takeover Rules
Because Rio is listed in both Australia and the UK, strict takeover rules apply. The company has until February 5 to submit a formal offer or withdraw from the process entirely.

Industry analysts suggest that Rio is primarily interested in Glencore’s copper portfolio, and that any deal may involve carving out coal and trading operations to streamline the merger.

Background of the Two Mining Giants
Glencore originated in the 1970s as a commodities trading business founded by Marc Rich.
Rio Tinto traces its roots back to 1873, named after the river in Spain where it operated what was then the world’s largest copper mine.