The London financial district is poised for a potential corporate earthquake as two of its mining titans, Rio Tinto and Glencore, have confirmed they are engaged in preliminary discussions about a possible merger. A combination of the FTSE 100-listed behemoths would forge the planet's largest mining company, with a staggering combined enterprise value of around £190 billion.
The Drive for Copper Dominance
This monumental move is fuelled by the global race to secure supplies of critical metals, with copper taking centre stage. The industry's accelerating pivot towards the energy transition has intensified demand for the red metal, whose price recently soared to a record high of $13,387 a tonne. A merger would significantly bolster the new entity's copper portfolio. Notably, Rio Tinto would acquire Glencore's prized 44 per cent stake in the Collahuasi mine in Chile, one of the world's most substantial copper reserves.
Navigating a Complex Path to a Deal
Any agreement between the pair is far from straightforward and would be subject to stringent approval processes. The transaction would likely proceed via a Court-sanctioned scheme of arrangement, requiring a 75 per cent majority vote from each company's shareholders, as well as court approval. Key powerbrokers in this decision will include former Glencore chief Ivan Glasenberg, who retains a 10 per cent stake, Qatar Holding (8.5 per cent), and Rio Tinto's largest shareholder, the Chinese state-owned entity Chinalco.
Significant hurdles remain, not least the integration of Glencore's thermal coal assets. Rio Tinto exited the coal sector in 2018, and reconciling this with Glencore's coal business presents a complex environmental, social, and governance (ESG) challenge. However, recent sector consolidation, such as the merger of Anglo American and Teck Resources, has increased pressure on Rio Tinto to secure its future in battery metals.
Timeline and Market Context
This is not the first time the two miners have considered a union; talks reportedly collapsed last year over valuation disagreements and the future of Glencore's coal division. Under the UK Takeover Code, Rio Tinto now has until 5pm on 5 February 2026 to either announce a firm intention to make an offer or walk away.
The market has reacted positively to the news over the past year, with Rio Tinto's stock climbing 22 per cent to 143.06p and Glencore's rising 13 per cent to 415.25p. A successful deal would see the combined group surpass current industry leader BHP and begin to rival the City's absolute giants, such as AstraZeneca, which currently leads the London market with a value of £220bn.
