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Rio Tinto and Glencore held talks last year about combining some or all of their businesses, in a sign of how the push by mining companies to secure metals needed for the energy transition has focused executives on large-scale deals. wide.
The London-listed companies engaged in early-stage talks as far back as October, according to people familiar with the matter, but discussions did not progress to a deal.
A full merger between Rio and Glencore — which have market capitalizations of $103 billion and $55 billion respectively — would rank among the biggest ever transactions in the mining industry.
Talks between the two companies followed BHP’s failed £39bn bid for Anglo American last year, prompting the rivals to review strategic options.
BHP was interested in Anglo’s copper mines, among other things, because the metal is used in renewable energy projects and electric vehicles.
Glencore and Rio both declined to comment. Bloomberg first reported that Rio and Glencore had discussed combining their businesses.
Rio’s Australian-listed shares fell 1.8 percent in early trading in Sydney, before rebounding to 1.4 percent.
Demand for commodities needed to decarbonize the global economy – such as copper, lithium and aluminum – has sparked a flurry of deal activity in the mining industry over the past year.
Rio last year announced a $7 billion deal to buy Arcadium Lithium as it ramps up its presence in metals used in batteries for electric vehicles.
People close to the company said it was still processing that transaction.
An activist shareholder campaign is also pushing for Rio to move its main listing from London to Sydney to enable more share-based deals in the future.
Glencore, which has a large commodities trading business as well as mining operations, has debated the future of its coal business.
The company said in 2023 it would spin off its coal mines into a separate listed business, but then changed its mind last year and decided to keep them.
Rio rejected a takeover bid from Glencore in 2014.
