Glencore in Merger Talks with Rio Tinto to Form Mega Miner
Sydney, 9 January 2026 – Glencore has confirmed it is engaged in preliminary discussions with Rio Tinto about a possible combination of their businesses, which could result in an all-share merger and the creation of the world’s largest mining giant.
Details of the Merger Discussions
According to a statement released by Glencore, the parties are exploring a potential merger that may involve an acquisition of Glencore by Rio Tinto via a Court-sanctioned scheme of arrangement. The announcement notes that there is no certainty an offer will be made, and it is not an invitation to make an offer under relevant takeover rules. Glencore’s shares fell slightly following the news, closing at 413.00 GBp on the London Stock Exchange, down 9.80 GBp.
The talks come amid speculation in the media, with sources indicating the deal could reshape the global mining landscape by combining Glencore’s commodities trading expertise with Rio Tinto’s extensive mining operations.
Key Facts
| Aspect | Details |
|---|---|
| Companies Involved | Glencore PLC and Rio Tinto plc/Rio Tinto Limited |
| Proposed Structure | All-share merger, potentially with Rio Tinto acquiring Glencore |
| Current Status | Preliminary discussions; no firm intention announced |
| Market Reaction | Glencore shares down 9.80 GBp to 413.00 GBp; ASX 200 expected to rise |
| Glencore’s Operations in Australia | 20 mines across NSW, Queensland, WA, and NT; focuses on coal, copper, lead-zinc, nickel-cobalt |
Background on Glencore
Glencore, headquartered in Switzerland, is a major producer and marketer of commodities, including copper, coal, and other metals. In Australia, the company operates extensively in Queensland and other states, contributing significantly to the economy. For instance, in 2024, its direct spend totalled A$19.6 billion, supporting regional and national economies. Recent developments include community updates on Mount Isa Mines and awards for women in mining.
The potential merger with Rio Tinto, another global mining leader, could enhance competitiveness in the face of rising costs and global competition, particularly from China and the US.
Frequently Asked Questions
What is the significance of this merger?
A combination of Glencore and Rio Tinto would create a mining powerhouse, potentially improving efficiency in production and trading of key commodities like copper and coal, which are crucial for energy transition and infrastructure.
Will the merger definitely happen?
No, the discussions are preliminary, and there is no guarantee of an agreement. Any deal would require regulatory approvals and shareholder consent.
How does this affect Australian operations?
Glencore’s Australian assets, such as copper smelters in Mount Isa and Townsville, could benefit from combined resources, but the outcome remains uncertain.