The "mega merger" in mining collapses as BHP(RIO.US) withdraws from Glencore(GLNCY.US) acquisition talks

2026-02-25 02:34:06

Global mining giant Rio Tinto (RIO.US) announced that it has withdrawn from acquisition talks with Glencore (GLNCY.US), as the two sides failed to reach an agreement due to valuation disagreements. The potential mega-merger that could have created the world’s largest mining company has thus fallen through.

In a statement, Rio Tinto said it does not intend to make an acquisition offer for the smaller competitor, Glencore. Under UK takeover rules, unless specific circumstances arise, Rio Tinto is not allowed to pursue this deal again for at least the next six months. Previously, media reports indicated that both parties would abandon the transaction.

The two companies disclosed in early January that they were in contact, and since then, negotiations centered around the premium Rio Tinto would need to pay. After the news was announced, Glencore’s stock price plunged more than 11%, and at the time of writing, it was down over 6.5%. Glencore later stated in another release that the company has a solid independent development logic and will continue to focus on its established strategic priorities.

In fact, the idea of a merger between Rio Tinto and Glencore has been discussed for over a decade. The concept first emerged before the 2008 global financial crisis; in 2014, Glencore had informal contact with Rio Tinto but was quickly rejected. It wasn’t until 2024 that both sides resumed serious negotiations.

Sources say the main reasons for repeated negotiations falling apart include Rio Tinto’s reluctance to pay high premiums and differences in management culture. Although the latest round of talks was considered the closest to a deal, the two sides remained deadlocked over valuation issues related to Glencore’s large and complex mining and commodities trading business, ultimately failing to cross a critical threshold.

With the collapse of negotiations, short-term disruptive changes in the global mining consolidation landscape are unlikely, and the industry’s merger wave faces renewed practical constraints.

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