Given the growing demand for metals to fuel the energy transition and artificial intelligence (AI), mining companies worldwide are revving up to accumulate metals, including copper.
This has, in turn, sparked a wave of project expansions and takeover attempts, including the pending merger of Anglo American and Teck Resources, to create a copper-focused industry heavyweight.
Rio Tinto and Glencore were tight-lipped about what this tie-up may entail, including which assets could be included, in what is the second round of talks in just over a year between the two.
Glencore approached Rio Tinto in late 2024 for a deal that did not ultimately proceed.
The companies said the expectation was that it would involve an all-share buyout of "some or all" of Glencore by Rio Tinto.
However, they did not disclose whether there would be a takeover premium or who would manage the combined company if the world's largest-ever mining deal was completed.
The companies said there was no certainty that the terms of any deal or offer would be agreed upon after the Financial Times first reported the revived talks. Under UK takeover rules, Rio Tinto has until 5 February to make a formal offer for Glencore or say it will not proceed.
US-listed shares of Glencore were up 6% after the talks were confirmed. But Rio Tinto’s Australian-listed shares fell as much as 6.4% in the biggest intraday fall since July 2022 against a broader positive market.
Rio Tinto, a global iron ore giant, has a market capitalisation of about $142bn. Glencore, one of the world’s largest base metal producers, is valued at $65bn as of its last close.
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