Finance
Glencore Close to Appointing Citi as Adviser for Rio Tinto Merger Talks, Sources Say
Published by Global Banking & Finance Review®
Posted on February 2, 2026
2 min readLast updated: February 2, 2026
Quick Summary
Glencore is nearing a deal to appoint Citi as its adviser in merger talks with Rio Tinto, potentially forming a $200 billion mining giant.
Glencore Nears Deal with Citi for Rio Tinto Merger Advisory Role
Overview of Glencore and Rio Tinto Merger Talks
By Divya Rajagopal and Clara Denina
Citi's Role in the Merger
TORONTO, Feb 2 (Reuters) - Swiss miner Glencore is close to engaging Citi as its lead investment bank on its potential acquisition by Rio Tinto that could create the world's largest miner worth over $200 billion, two people familiar with the matter told Reuters.
Market Expectations and Advisory Competition
Citigroup Global Markets Inc. filed disclosures with the UK Takeover Panel in January, identifying itself as connected with Glencore Plc in relation to a possible deal with Rio Tinto, according to filings made at the London Stock Exchange.
UK Takeover Rules and Deadlines
The bank and Glencore declined to comment.
Citi has a long-standing relationship with Glencore, having advised the miner and trader on several major transactions, including its 2011 initial public offering and, more recently, the buyout of Teck Resources' coal business.
Markets have widely anticipated that Rio Tinto and Glencore, which on January 8 said they were in early merger talks, might seek to extend the current deadline for a possible bid, given the scale and complexity of a potential deal.
Under UK takeover rules, a potential bidder has 28 days from being identified to either announce a firm intention to make an offer or walk away. The current deadline expires on Feb 5, though the parties could request an extension.
Other investment banks are also vying for advisory roles on the deal, the sources said, without naming them.
Rio Tinto appointed JP Morgan, Evercore and Macquarie to advise on the deal, according to people aware of the development, Reuters reported earlier this month.
The advisory roles on a deal of this magnitude are highly coveted as bankers jostle for a share of potentially more than $100 million in advisory fees.
(Reporting by Divya Rajagopal in Toronto and Clara Denina in London; Editing by Emelia Sithole-Matarise)
Key Takeaways
- •Glencore is close to appointing Citi for Rio Tinto merger talks.
- •The merger could create the world's largest miner worth over $200 billion.
- •Citi has a long-standing relationship with Glencore.
- •Rio Tinto has appointed JP Morgan, Evercore, and Macquarie as advisers.
- •The advisory roles could yield over $100 million in fees.
Frequently Asked Questions about Glencore close to appointing Citi as adviser for Rio Tinto merger talks, sources say
1What is a merger?
A merger is a business strategy where two companies combine to form a single entity, often to enhance competitiveness, expand market reach, or achieve synergies.
2What is investment banking?
Investment banking is a financial service that helps companies raise capital by underwriting and issuing securities, as well as providing advisory services for mergers and acquisitions.
3What are advisory fees?
Advisory fees are charges paid to financial advisors or investment banks for their services in providing strategic advice, typically during mergers, acquisitions, or other financial transactions.
4What are UK takeover rules?
UK takeover rules are regulations that govern the process of acquiring a company in the UK, including disclosure requirements and timelines for making offers.
5What is a lead investment bank?
A lead investment bank is the primary financial institution responsible for managing and coordinating a financial transaction, such as a merger or acquisition.
