"Rio Tinto and Glencore are resuming talks to combine the companies in a move that would create the world's largest mining group. The firms are looking at a possible all-share merger, with Rio Tinto as the larger of the two acquiring Glencore by a scheme of arrangement. There have been talks before that broke down, but I think the pair has more chance of success this time."
"It's unclear if Glencore's trading arm will be part of the deal, but it's likely Rio would want to spin off Glencore's coal business, which will be easier following the changes announced in May to restructure its coal business. Glencore shares jumped over 8% while Rio Tinto shares fell over 6% in Australia and were off 2.5% in London this morning."
Rio Tinto and Glencore have resumed talks on a possible all-share merger that could create the world's largest mining group, with Rio Tinto set to acquire Glencore by a scheme of arrangement. The deal may exclude Glencore's trading arm and could involve spinning off its coal business after May restructuring. Glencore shares jumped over 8% while Rio Tinto shares fell over 6% in Australia and 2.5% in London. Consolidation in mining is seen as necessary to achieve scale for stability and to fund new projects. The FTSE 100 rose, other miners advanced, Sainsbury's fell, and Greenland mineral interest lifted Amaroq and Critical Metals.
Read at London Business News | Londonlovesbusiness.com
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