Rio Tinto, Glencore Abandon Merger Talks to Create Mining Behemoth — 3rd Update

By Rhiannon Hoyle and Mauro Orru

Rio Tinto said it was no longer considering a potential tie-up with Glencore after weeks of talks, killing a potential deal that would have created the world's largest mining company with a market value of more than $200 billion.

The companies said they failed to reach an agreement on the key terms of a potential deal, which included Rio Tinto retaining both the chairman and chief executive roles and pro forma ownership of the combined group.

A takeover of Glencore by Rio Tinto would have catapulted the combined group to the top of the copper-mining industry. However, Glencore said those terms significantly undervalued its copper business and the company's contribution to the merged entity, meaning they wouldn't be in the best interests of its shareholders.

The group said it remains strong as a standalone company thanks to a well-diversified business across a range of commodities and recent efforts to simplify its operating structures.

Glencore shares dropped more than 8%, while Rio Tinto stock in London was down 3%.

The two companies last month confirmed they were in talks over a possible combination of some or all of their businesses, which could have included an all-share takeover of London-listed trader and miner Glencore by Anglo-Australian mining giant Rio Tinto.

Deal talks had been playing out amid a surge in copper prices, which recently topped $14,500 a metric ton in London as buyers fret about the availability of supply.

The companies had previously held discussions in 2024, but those talks ended without agreement. Since then, Rio Tinto has replaced its chief executive, elevating former iron-ore boss Simon Trott to the top job with a mission to unlock significant value for shareholders from its sprawling portfolio of assets.

Like most major miners, Rio Tinto is prioritizing an expansion of its copper business, betting the industrial metal will be a hot commodity as the world builds more electric vehicles, renewable energy infrastructure and data centers.

The scramble for copper is leading miners to pursue big acquisitions after years on the sidelines. Securing deals can help miners increase their production faster than building new pits, which typically take years if not decades to develop and are at risk of cost overruns.

BHP Group, currently the world's No. 1 miner by market value, made several unsuccessful attempts to acquire rival Anglo American over the past two years. Anglo has instead agreed to merge with Canada's Teck Resources in a deal signed off by shareholders of both companies late last year.

The value of mining deals surged to a 13-year high in 2025, according to law firm White & Case. Executives had spent much of a decade wary about doing big deals after companies overpaid for assets during a China-led commodities boom that peaked around 2011.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com and Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

February 05, 2026 11:52 ET (16:52 GMT)