British mining giant, Rio Tinto, is in early talks to buy Glencore, the companies said, in what could create the world’s largest mining company with a combined market value of nearly $207 billion.
UK-based Rio Tinto and Anglo-Swiss Glencore said in regulatory statements late on Thursday that discussions involve an all-share transaction. Under these terms, Rio Tinto would acquire Glencore through a court-sanctioned scheme of arrangement.
The move comes as global miners race to scale up in metals like copper, seen as critical to the energy transition, fueling a surge in project expansions and takeover attempts.
Glencore has an enterprise value of $99 billion, according to LSEG data, which would make its purchase the sector’s biggest-ever deal.
Both companies operate large copper assets that have benefited from record prices, and a potential combination could create a competitor to BHP Group, currently the world’s largest miner.
In a statement to shareholders, Glencore said it was aware of recent media speculation and confirmed that it is in preliminary discussions with Rio Tinto regarding a possible combination involving some or all of their businesses. Glencore said the discussions could include an all-share merger.
The company added that, at this stage, the expectation is that any transaction would be structured as an acquisition of Glencore by Rio Tinto through a court-sanctioned scheme of arrangement.
Rio Tinto separately confirmed that the two groups have been engaged in early-stage discussions about a potential combination and said that any merger would involve Rio Tinto acquiring Glencore.
The two miners have previously explored consolidation. In 2014, Rio Tinto rejected a merger proposal from Glencore, which was then the smaller rival.
Merger activity has remained a recurring theme in the global mining sector, with several high-profile approaches failing to materialise. More recently, BHP’s bid for Anglo American was unsuccessful, while Anglo American has moved ahead with its acquisition of Teck Resources.
Here is a list of other major mining deals:
Glencore Buys Xstrata
In February 2012, a year after Glencore debuted on the London Stock Exchange, it agreed an all-share purchase of Switzerland-headquartered miner Xstrata, which had an enterprise value of nearly $46 billion, according to LSEG data.
The deal created a commodities powerhouse spanning mining, agriculture, oil and trading.
Rio Tinto Buys Alcan
In 2007, Rio Tinto bought Canada’s Alcan to create the world’s No. 1 aluminum producer in an attempt to diversify beyond its strength in iron ore and copper.
Rio Tinto’s offer, which had an enterprise value of $43 billion, beat a hostile bid from U.S. aluminium producer Alcoa.
Anglo American Agrees To Buy Teck Resources
In September 2024, London-listed Anglo American and Canada’s Teck Resources announced plans to merge, creating a new global copper-focused heavyweight.
The all-share deal, while structured as a merger of equals, will involve Anglo acquiring Teck, which currently has an enterprise value of $39 billion, according to LSEG data.
It is headed for an antitrust clearance in Europe after regulators signalled an absence of competition concerns.
Freeport-Mcmoran Buys Phelps Dodge
In 2007, Freeport-McMoRan completed its acquisition of Phelps Dodge Corp, one of the most famous names in U.S. mining history, to form the world’s largest publicly traded copper company. Phelps Dodge had an enterprise value of nearly $23 billion.
The combined entity’s footprint spanned from Indonesia to South America.
Newmont Buys Newcrest Mining
In 2023, Newmont, the world’s largest gold miner, acquired Australia’s top gold producer Newcrest Mining, which had an enterprise value of nearly $20 billion.
