Home Money Glencore and Rio in talks over £130bn merger that would see them topple BHP as mining industry leader

Glencore and Rio in talks over £130bn merger that would see them topple BHP as mining industry leader

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London-listed mining giants Rio Tinto and Glencore have held talks over a possible merger

Rio Tinto and Glencore have held talks over a possible merger that would be the biggest deal ever for the mining sector.

The London-listed mining giants have held early-stage talks about a combination of the two businesses, Bloomberg reported last night.

A deal would knock industry leader BHP from the top spot and create a company worth around £130bn.

It comes amid a wave of deals in the sector in recent years as miners try to increase their production of copper, a metal seen as key to the transition to green energy.

And this follows BHP’s failed attempt to buy London-listed miner Anglo American last year.

The Australian giant abandoned acquisition talks after fierce opposition from Anglo’s board, abandoning what would have been one of the biggest alliances ever made in the mining sector.

London-listed mining giants Rio Tinto and Glencore have held talks over a possible merger

As part of its fight, Anglo unveiled a major restructuring plan to split up, including the sale of its De Beers diamond division.

Last year, Switzerland-based Glencore, with a market capitalization of almost £45bn, completed its £5.6bn acquisition of the steelmaking coal unit of Canadian miner Teck Resources.

And Rio Tinto boss Jakob Stausholm said he would not rule out big deals in the copper sector.

But he warned that big M&A deals can present a “huge risk” that could “derail the entire company.”

Rio Tinto, worth around £84bn, is the world’s largest iron ore producer.

It relies on the mineral to boost its gains at a time when the market appears headed for a prolonged period of weakness.

Bloomberg reported yesterday that it is unclear whether merger talks between Glencore and Rio Tinto are ongoing.

A Glencore spokesperson said: “We do not comment on market rumors or speculation.” Rio Tinto was not immediately available for comment.

Rio Tinto said it does not comment on market rumours.

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