Glencore said on Thursday it was in early talks to be acquried by Rio Tinto, in a combination that would potentially create the world’s largest mining company.
The combined company would have an enterprise value of more than US$260 billion, according to the Financial Times, which first reported the news.
“Glencore confirms that it is in preliminary discussions with Rio Tinto about a possible combination of some or all of their businesses, which could include an all-share merger between Rio Tinto and Glencore,” it said in a statement.
The Swiss miner and trader added that any deal would be implemented through Rio Tinto’s acquisition of Glencore through a court-sanctioned scheme of arrangement and that there was no certainty that the terms of any deal or offer would be agreed upon.
The deadline is 3:30 p.m. London time on that 10th business day.
U.S.-listed shares of Glencore were up six per cent after the company confirmed deal talks, while Rio Tinto’s U.S. listed shares were down 0.6 per cent.
Rio Tinto, the world’s biggest iron ore miner, has a market capitalization of about US$142 billion, while Glencore is valued at US$65 billion as of last close.
Glencore had approached Rio Tinto in 2024 about combining the two big copper producers but the discussions were short-lived.
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Reporting by Shivani Tanna in Bengaluru; Editing by Shilpi Majumdar and Anil D’Silva
