Rio Tinto and Glencore abandon merger talks

(Sharecast News) - Rio Tinto said on Thursday that it has abandoned merger talks with Glencore after they failed to reach an agreement "that would deliver value to its shareholders". It said: "Rio Tinto assessed the opportunity and came to this view through the disciplined lens set out at its capital markets day in December 2025 - prioritising long-term value and delivering leading shareholder returns."

For its part, Glencore said the key terms of the potential offer were Rio Tinto retaining both the chairman and chief executive officer roles and delivering a proforma ownership of the combined company. This "significantly undervalued Glencore's underlying relative value contribution to the combined group, even before consideration of a suitable acquisition control premium", it said.

"We concluded that the proposed acquisition on these terms is not in the best interests of Glencore shareholders.

"It does not reflect our view on long term, through the cycle relative value, including not adequately valuing our copper business, and its leading growth pipeline, and apportioning material synergy value potential."

Glencore insisted that its standalone investment case is strong. "We have a well-diversified business across a range of commodities, supported by one of the best marketing franchises in the industry," it said.

"We are uniquely positioned to support the energy needs of today whilst providing many of the transition enabling commodities the world needs as demand changes."

At 1600 GMT, Glencore shares were down 8% at 469.15p, while Rio was 2.6% lower at 6,826.30p.