The mining industry is on edge after reports surfaced of potential merger discussions between Rio Tinto and Glencore, two of the sector's most prominent players. Bloomberg News reported that the companies held preliminary talks regarding a tie-up, though the current status of these discussions is unclear.
Glencore's market cap has dropped from over $70 billion to below $57 billion, making it a potential takeover target in 2025. Despite recent declines, commodity demand is expected to rise due to population growth, persistent inflation, and long development times for new projects. The Trump administration's policies could spur M&A activity in the mining sector, enhancing economies of scale and profitability.
Is the natural sector on the cusp of shrinking from four majors to just two super-majors? It's a distinct possibility with merger mania now sweeping through the industry.
A deal aimed at capturing a bigger slice of the metals market, the proposed $160 billion merger of Rio Tinto and Glencore, appears doomed to fail, just as last year's $50 billion attempt by BHP to acquire Anglo American also failed.
Glencore approached Rio Tinto , late last year about combining the two big copper producers but the discussions are no longer active, a person familiar with the matter said.
Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada.
Mining giants Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) and Glencore PLC (LSE:GLEN) have reportedly engaged in preliminary discussions about a potential merger, Bloomberg reported on Thursday, citing sources familiar with the matter. The talks, which remain in the early stages, could pave the way for the mining industry's largest-ever deal, reshaping the global landscape.
Rio Tinto and Glencore Plc GLEN.L have been discussing combining their businesses, Bloomberg News reported on Thursday, citing people familiar with the matter.
South African renewable energy company Pele Green Energy said on Wednesday it reached a financial close for a Solar Plant with Glencore's South African ferroalloys unit and its joint venture partner Merafe Resources.
Glencore and Chandra Asri, gearing up to complete their takeover of Shell's landmark Singapore refinery, have set up a new operating company and will earmark roughly 20% of output for the plant's outgoing owner, sources familiar with the matter said.
Glencore PLC (LSE:GLEN) has maintained its production forecast for the current year even though most of its mining operations saw modestly lower output in their latest quarter. Cobalt saw the biggest drop, at 18% but copper, zinc, nickel and silver were also down with gold flat.
Santacruz Silver Mining Ltd (TSX-V:SCZ, OTC:SZSMF) has announced the signing of definitive agreements to amend the terms related to the earlier sale of Glencore PLC (LSE:GLEN)'s Bolivian mining assets to Santacruz. The agreements, effective from October 3, 2024, include an omnibus agreement and an amended security agreement, following negotiations with Glencore.