Unlock Editor’s Digest for free
Roula Khalaf, editor of the FT, picks her favorite stories in this weekly newsletter.
Rio Tinto and Glencore held talks last year about merging some or all of their businesses, an indication that the mining companies’ push to secure the metals needed for the energy transition has focused CEOs on big deals.
The London-listed companies began early-stage talks back in October, but talks have not progressed to a deal, according to people familiar with the matter.
A full merger between Rio and Glencore – which have market capitalizations of $103 billion and $55 billion, respectively – would rank among the biggest transactions ever in the mining industry.
Talks between the two companies followed BHP’s failed £39bn bid for Anglo American last year, prompting rivals to reconsider strategic options.
BHP was interested in Angle’s copper mines, among other things, because the metal is used in renewable energy projects and electric vehicles.
Glencore and Rio declined to comment. Bloomberg first reported that Rio and Glencore were in talks to merge their businesses.
Demand for commodities needed to decarbonize the global economy – such as copper, lithium and aluminum – has sparked a flurry of deal-making activity in the mining industry over the past year.
Last year, Rio announced a $7 billion deal to acquire Arcadium Lithium, as it increases its presence in metals used in electric vehicle batteries.
People close to the company said it was still digesting the transaction.
The activist shareholder campaign is also pushing for Rio to move its primary listing from London to Sydney to allow for more equity-based deals in the future.
Glencore, which has a large commodity trading business as well as mining operations, discussed the future of its coal business.
The company said it would spin off its coal mines into a separately listed business in 2023, but then he changed his mind last year and decided to keep them.
Rio rejected Glencore’s takeover bid in 2014.
