Rio Walks Away From Glencore Mega Merger on Price Impasse

(Bloomberg) — Rio Tinto Group is walking away from talks to acquire Glencore Plc after the two sides failed to agree on valuation, scuttling a potential mega merger that would have created the world’s largest mining company.

Rio said it does not intend to make an offer for its smaller rival, shortly after Bloomberg News reported that the talks would be abandoned. The deal would have been the largest in a series of attempted takeovers among the world’s top miners, as executives look to bulk up in copper and boost their valuations to gain more relevance with global investors.

The two sides confirmed that they were in talks in early January, and have been wrangling over the premium that Rio would need to pay. Rio has a market capitalization of about $157 billion, while Glencore is valued at about $76 billion.

“It is possible that the two companies re-engage at some point in the future, but that is not our base case,” Jefferies analyst Christopher LaFemina said in an emailed note. “Rio likely goes it alone.”

Glencore was seeking a share-exchange ratio that would have given its own investors about 40% of the combined company, according to people familiar with the matter. Rio walked away after it was unable to justify the premium that implied, and the smaller company was unwilling to adjust its position, some of the people said.

Both companies declined to comment on the details of the talks.

“Rio Tinto has determined that it could not reach an agreement that would deliver value to its shareholders,” the company said in a statement.

Glencore shares plunged as much as 11%. The company said in a separate statement that it has a strong standalone case and remains focused on delivering its own priorities. Rio had sought to retain both the chairman and chief executive officer roles without offering a large enough premium, Glencore said. Under UK rules, Rio won’t be able to pursue the company for at least six months, except in specific circumstances.

The idea of a combination of the two companies has been discussed several times over more than a decade. It was first floated before the global financial crisis of 2008, and then revived in 2014 – when Rio quickly rejected an informal approach from Glencore – before conversations resumed in earnest in 2024.

Those talks foundered over Rio’s unwillingness to pay a big premium, as well as differences in management cultures. The most recent negotiations — confirmed on Jan. 8 after a report by the Financial Times — brought the sides closer than ever to a deal, but they remained at loggerheads over the valuation of Glencore’s sprawling mining and trading business.

The deal would have allowed Rio to roughly double its existing copper output, potentially establishing it as the world’s top producer as prices trade near record highs. It would have also added about 1 million tons of future copper growth into its portfolio.

Glencore has faced scrutiny from investors over its copper strategy after a series of production setbacks that have fueled a 40% decline in output since a peak in 2014. The company has historically avoided investing in new mines, but Chief Executive Gary Nagle told investors in December that “now is the time to sanction these projects”.

“We see a greater possibility that Glencore remains active on the M&A front,” said Jefferies’ LaFemina. “In the meantime, we expect management to refocus its efforts on growing copper production.”

–With assistance from Ruth David.

(Adds chart and details throughout.)

©2026 Bloomberg L.P.