Rio Tinto Group and Glencore Plc are nearing a definitive agreement on a merger that would form the world’s largest mining company, with a combined market value exceeding $200 billion. The deal marks a significant turnaround after negotiations collapsed just over a year ago.
- Merger would create the world’s largest mining company with over $200 billion in combined market value
- Rio Tinto and Glencore have resumed advanced talks after previous negotiations collapsed in 2024
- Combined entity would produce over 60 million tonnes of iron ore and 1.5 million tonnes of copper annually
- Deal hinges on regulatory approvals from major jurisdictions including the EU, US, China, and Australia
- Rio Tinto’s shares rose 12%, Glencore’s 9% in the past three months on merger speculation
- Strategic alignment driven by demand for critical minerals in clean energy transition
Rio Tinto and Glencore have resumed advanced discussions on a transformative merger, bringing the two mining giants closer than ever to finalizing a deal. The proposed transaction would unite Rio Tinto’s extensive iron ore and copper assets with Glencore’s global commodities trading network and diversified production portfolio. The combined entity would command a market capitalization exceeding $200 billion, positioning it as the largest mining company by market value globally. The renewed talks come after a previous attempt in late 2024 collapsed due to divergent valuation expectations and regulatory concerns. Since then, both companies have made structural adjustments, including strategic asset reviews and leadership reassessments, to align their visions. The latest momentum is driven by rising demand for critical minerals and a shared strategic goal to strengthen supply chain resilience amid shifting geopolitical dynamics. Market signals suggest growing confidence in the deal. Rio Tinto’s share price has risen 12% over the past three months, while Glencore’s has gained 9%, reflecting investor anticipation. The merger would create a company with over 60 million tonnes of annual iron ore output, 1.5 million tonnes of copper, and significant nickel and cobalt production, critical for electrification and renewable energy infrastructure. The outcome will depend on regulatory approvals from antitrust authorities in the European Union, United States, China, and Australia, where both companies have major operations. Should the deal close, it would mark one of the largest industrial consolidations in mining history and reshape the global commodities landscape.