Published by Global Banking & Finance Review®
Posted on January 9, 2026
3 min readLast updated: January 20, 2026
Add as preferred source on GoogleGlencore's shares jumped on news of merger talks with Rio Tinto, potentially forming the largest mining company, valued at $207 billion. Investor reactions are mixed due to concerns over valuation.
By Clara Denina
LONDON, Jan 9 (Reuters) - Glencore shares rose almost 9% on Friday following news it is in talks with Rio Tinto about a potential takeover that would create the world's largest mining group, valued at almost $207 billion.
While Glencore gained, Rio Tinto shares fell by as much as 3%, reflecting investor scepticism towards a deal and concerns it will overpay.
The two miners have discussed combining their operations before. In 2014, Rio Tinto rejected a merger offer from Glencore, saying it was not in the interest of its shareholders.
Merger talks in late 2024 also ended without a deal.
RACE FOR COPPER, OTHER STRATEGIC MINERALS
Since then, Rio Tinto has appointed a new CEO and the competition for reserves of metals including copper, needed for the energy transition and artificial intelligence, has intensified.
The companies said late on Thursday, after the Financial Times newspaper reported the talks, that the expectation was for an all-share buyout of "some or all" of Glencore by Rio Tinto.
Few details were made public.
Under UK takeover rules, Rio Tinto has until February 5 to make a formal offer for Glencore or say it will not proceed.
Richard Hatch, analyst at Berenberg, said a deal made sense and followed successful mergers, such as that between Anglo American and Teck Resources, whose rationale was access to copper.
Rio needs more copper as "the market (rightly or wrongly) views iron ore as a commodity facing price decline," he said, adding it was better to buy producing assets rather than to wait to build new mines.
SOME RIO SHAREHOLDERS QUESTION THE LOGIC
Some Rio shareholders, however, are not convinced.
"The share market tells you what you want to know. Investors are not happy with this," said Hugh Dive, chief investment officer of Atlas Funds Management, a Rio Tinto shareholder.
"I like the concept of going to copper, but the record is dreadful for the big majors making acquisitions or even mergers. We've seen a lot of these big mergers occur at the top of the market, and they end up being very dilutive over time," he said.
Rio Tinto, the world's biggest iron ore miner, has a market capitalisation of about $142 billion. Glencore, one of the world's largest base metal producers, is valued at $65 billion.
China, the dominant buyer of industrial metals and a stakeholder in Rio via state-owned Chinalco, would likely raise antitrust hurdles, said RBC analyst Kaan Peker.
The combined company would overtake Australia's BHP Group, currently the biggest miner with a market capitalisation of $161 billion. BHP shares closed 0.8% higher on Friday.
(Reporting by Clara Denina; writing by Barbara Lewis; editing by Jason Neely)
Market capitalisation is the total market value of a company's outstanding shares, calculated by multiplying the current share price by the total number of shares. It reflects the company's size and market value.
Mergers and acquisitions (M&A) refer to the process where companies consolidate through various types of financial transactions, including mergers, acquisitions, and takeovers, to enhance their market position.
Investor sentiment is the overall attitude of investors toward a particular security or financial market. It can influence market trends and is often driven by news, events, and economic indicators.
Strategic implications refer to the potential effects or consequences that a business decision, such as a merger or acquisition, may have on a company's future operations, market position, and competitive advantage.
Antitrust considerations involve evaluating whether a merger or acquisition may reduce competition in a market, potentially leading to monopolistic practices. Regulatory bodies assess these impacts to protect consumer interests.
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