Raw materials Experts see good time for possible Glencore merger with Rio
The Swiss mining group Glencore and its British-Australian competitor Rio Tinto are looking into a merger. Analysts see this as an opportunity to create the world's largest diversified mining group with a value of over 260 billion dollars.
09.01.2026, 10:01
SDA
It is "a very favorable time for Rio and Glencore to merge", according to a commentary by Baader Bank on Friday. The strategy of the two groups fits together and the Australian rival BHP is currently in a difficult situation after several failed attempts to take over Anglo American.
This means that Glencore and Rio Tinto could take on a new leading position together, the analysts added. "This time the talks appear to be more serious as both companies have confirmed they are in 'preliminary discussions'."
Meanwhile, analysts at Creditsights highlight that Rio Tinto could be interested in Glencore's copper business. Glencore wants to expand this significantly and become the world's largest copper producer. In addition to copper, Rio Tinto specializes in iron ore and aluminium.
Cultural differences as a risk
According to Creditsights, the focus on copper could be in line with Rio Tinto's focus on "sustainable and future-oriented metals". From a cultural perspective, however, there are differences between the companies.
For example, Rio Tinto is traditionally perceived as "conservative and stability-oriented", while Glencore is known for its "aggressive approach". "This cultural difference could lead to integration and decision-making problems in the event of a merger," the experts warned.
Glencore shares traded in London jumped after the reports, gaining more than 8 percent at the open. Shares in Rio Tinto, on the other hand, fell by around 6 percent on the Sydney Stock Exchange. According to Baader, investors fear short-term dividend losses in the case of large deals.
Factual takeover by Rio Tinto
According to the two companies, one possible deal would see Glencore being taken over by the financially stronger company Rio Tinto. A merger of some or all of the businesses would be possible.
Rio Tinto must announce by February 5 at the latest whether it intends to submit an offer. A year ago, attempts at rapprochement were still unsuccessful. Glencore's first merger offer even dates back to 2014.
Glencore employs around 150,000 people worldwide and is based in Baar, while Rio Tinto manages its 60,000 employees from London.
