Open Editor's Digest for free
Rula Khalaf, editor of the Financial Times, picks her favorite stories in this weekly newsletter.
Rio Tinto and Glencore held talks last year about merging part or all of their businesses, a sign of how the push by mining companies to secure minerals needed for the energy transition has focused executives on large-scale deals.
The London-listed companies engaged in early talks last October, but discussions did not progress towards an agreement, according to people familiar with the matter.
A full merger between Rio and Glencore — which have market capitalizations of $103 billion and $55 billion, respectively — would be among the largest deals ever in the mining industry.
Talks ensued between the two companies BHP's £39bn bid for Anglo American has failed Last year, which prompted competitors to review strategic options.
BHP was interested in Anglo's copper mines, among other things, because the metal is used in renewable energy projects and electric cars.
Glencore and Rio declined to comment. Bloomberg first reported that Rio and Glencore had discussed merging their businesses.
Demand for commodities needed to decarbonize the global economy – such as copper, lithium and aluminum – has led to a flurry of deal-making activity in the mining industry over the past year.
Rio last year announced a $7 billion deal to acquire Arcadium Lithium, as part of increasing its presence in the minerals used in electric vehicle batteries.
People close to the company said it was still digesting the deal.
Activist shareholders are also pressuring Rio to move its primary listing from London to Sydney in order to enable more share-based deals in the future.
Glencore, which has a large commodities trading business as well as mining operations, has been discussing the future of its coal business.
The company said in 2023 it would spin off its coal mines into a separate listed company, but then… She changed her mind Last year I decided to keep it.
Rio rejected a takeover bid from Glencore in 2014.
