Wall Street Competes to Advise on Rio-Glencore Merger Worth $100M

Overview of the Rio-Glencore Merger Discussions

By Andres Gonzalez, Amy-Jo Crowley and Anousha Sakoui

Potential Fees for Advisers

LONDON, Jan 9 (Reuters) - Rio Tinto's ambition to acquire Glencore and create the world's largest mining company worth more than $200 billion could see Wall Street advisers share more than $100 million in fees. 

Current Market Conditions for M&A

Hours after the two mining giants said on Thursday they are discussing merging through an all-share buyout of "some or all" of Glencore by Rio, the race is on to secure a slice of the spoils, said three people with knowledge of the matter.

Historical Context of Merger Talks

A representative for Rio, which has until February 5 to make a formal offer for Glencore or walk away under British takeover rules, said it expects to disclose advisers when a deal firms up. Glencore declined to comment.

Companies typically retain several banking advisers to assist them on negotiations, plans for how to structure their businesses and liaising with investors and other stakeholders.

Fees for merger and acquisition advice vary depending on the complexity of the deal and whether advisers provide funding.

But a deal of the size of Rio-Glencore could generate fees that could easily exceed $100 million for the banks involved, two people with knowledge of such transactions said and data on fees on top M&A deals compiled by LSEG showed.

The companies have yet to formally announce advisers, with some roles still being firmed up, sources at advisory firms jostling for positions told Reuters. There were no advisers listed on either company's announcement confirming the talks, which typically include the deal advisers.

JPMorgan, as so-called corporate broker to Rio, is in the lead to advise the world's biggest iron ore miner. UBS is also a broker to Rio, while Glencore does not have a formal broker.  

In Britain publicly traded companies retain corporate brokers to steer them through liaising with investors and typically become the bank they turn to for advice on dealmaking.

Meanwhile, Citi retains ties to Glencore having advised it on previous deals including its failed acquisition of Teck in 2023, two people with knowledge of the matter said.

JPMorgan, Citi and UBS declined to comment.

M&A DEALMAKING TICKING UP 

Goldman Sachs, JPMorgan and Morgan Stanley led global M&A rankings last year by fees, which rose 19% from 2024, driven by strong deal activity in North America, Dealogic data shows.

The blockbuster mining deal talks come as bigger corporate M&A ticks up, raising the stakes for advisers that miss out.

There were 68 deals for $10 billion or more in 2025, totalling $1.5 trillion and more than double the previous year, LSEG data shows. Looser U.S. regulatory scrutiny is emboldening big companies and encouraging dealmaking.

Meanwhile, a drop in interest rates over the past year has made it easier to finance deals.

Conditions for big deals are unlikely to get much better, said a banker advising on cross-border transactions who is not involved in the Rio-Glencore talks, adding that potential bidders are thinking of striking now as they have become more comfortable with the debate around tariffs.

There is no certainty that Rio's discussions with Glencore will reach a successful outcome and advisory banks may be left with little or no fees if a deal fails to materialize, leaving them with payments of just a few hundred thousand dollars.  

The two miners have discussed combining their operations before and in 2014, Rio rejected a Glencore merger offer, saying it was not in the interest of its shareholders. 

Merger talks in late 2024 also ended without a deal.

(Reporting by Andres Gonazalez, Amy-Jo Crowley, Anousha Sakoui in London. Additional reporting by Clara Denina in London. Editing by Elisa Martinuzzi and Alexander Smith)