On January 9, 2026, Rio Tinto and Glencore announced that they are in preliminary discussions about a potential merger that would combine the two companies into the world’s largest mining group. The talks are described as “preliminary” and could take the form of an all‑share transaction, with Rio Tinto positioned to acquire Glencore’s assets. Rio Tinto has a firm deadline of February 5, 2026 to either make a formal offer or withdraw from the negotiations, a timeline that underscores the urgency of the talks.
Analysts estimate the combined market value of the two companies at roughly $207 billion, while other estimates place the enterprise value above $260 billion. The valuation reflects the high premium that investors are willing to pay for the combined copper portfolio, the trading arm, and the scale of the iron‑ore and coal businesses that would be brought together. The deal would create a mining group with a diversified commodity mix that could better weather commodity‑price swings.
The primary driver behind the merger is the surge in demand for copper, a critical metal for electric vehicles, renewable‑energy infrastructure, and data‑center construction. Rio Tinto, whose iron‑ore business accounts for about two‑thirds of its 2025 EBITDA, seeks to broaden its exposure to copper, while Glencore already holds a substantial copper portfolio. By combining forces, the new entity would be positioned to capture higher copper prices and benefit from Glencore’s global trading network, which has historically added value beyond its mining operations.
Several challenges could impede the completion of the deal. Glencore’s coal business, which was spun off into a separate Australian entity in May 2025, remains a potential point of friction, as Rio Tinto has divested from coal since 2018. Valuation disagreements were a key reason the 2024 talks failed, and the parties must reconcile their expectations for the combined enterprise value. Integration of two large, complex organizations will also test management teams, and the deal will face scrutiny from UK takeover regulators, who require a clear timeline and disclosure of any material risks.
Both CEOs have weighed in on the talks. Glencore CEO Gary Nagle has called a merger with Rio Tinto “the most logical deal in the mining industry,” highlighting the complementary asset bases. Rio Tinto CEO Simon Trott, in his first major decision as chief executive, has emphasized the need to accelerate the company’s transition to a more diversified commodity mix and to unlock value from its copper assets.
Investors have reacted to the announcement with heightened interest in the copper market and the potential synergies of a combined mining giant. The talks have sparked discussions about the future of large‑scale mining consolidation, as other major players in the sector consider similar strategies to capture strategic metals for the energy transition.
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