Mining groups Glencore (GLEN) and Rio Tinto (RIO) have revealed they are in talks about a potential merger of some or all of their businesses.
There have even been discussions about an all-share £150 billion-plus merger of the two firms with Rio taking over Glencore.
Overnight, Glencore’s US ADRs were up nearly 9% while in Australia this morning Rio shares traded nearly 7% lower.
| Glencore price: 448p +8.5% | P/E: 16x |
| Market Cap: £52.6bn | Yield: 2% |
This is the second round of talks between the two firms in just over a year after Glencore approached Rio in 2024.
As they both say, there is no guarantee a deal can be done and they may end up swapping assets so it’s a case of watching and waiting.
As the potential acquirer, Rio has until 5pm on 5 February to announce whether it intends to make an offer or walk away.
Read the press release here: https://www.glencore.com/investors
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