The Rio Tinto group announced it is abandoning negotiations to acquire Glencore, ending a potential mega-merger that could create the world’s biggest mining company, after the two parties failed to reach an agreement on valuation.
Rio said it does not intend to make a bid for its smaller rival and, under UK rules, will not be able to pursue the company again for at least six months, except in specific circumstances. THE Bloomberg News had already informed earlier that the deal would be abandoned.
The two companies announced that they were in talks in early January and had been discussing the premium that Rio would have to pay. Glencore shares plummeted 11%. In a separate statement, the company said it has a strong case as an independent company and remains focused on delivering its own priorities.
The idea of combining the two companies had already been discussed several times over more than a decade. It was first raised before the 2008 global financial crisis and revived in 2014 — when Rio quickly rejected an informal approach from Glencore — before talks resumed more forcefully in 2024.
These negotiations failed due to Rio Tinto’s reluctance to pay a large premium, as well as differences in management cultures. The latest discussions have brought the parties closer to a deal than ever before, but they remain conflicted over the valuation of Glencore’s sprawling mining and trading business.
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