By Evgenia Filimianova

Rio Tinto is in early discussions to buy rival Glencore, the two companies said this week, a move that could create the world’s largest mining company with a combined market value of nearly $207 billion.

The talks, which remain preliminary, were disclosed by Glencore in a Jan. 8 statement and confirmed by Rio Tinto a day later. Both companies said there is no certainty that a deal will be agreed, nor clarity yet on its structure or terms.

If completed, the transaction would combine Rio Tinto’s dominance in iron ore and large-scale mining with Glencore’s extensive portfolio of metals, coal, and global commodity trading operations.

Glencore, a Switzerland-based miner and trader, said the discussions “could include an all-share merger,” with the current expectation that any transaction would be carried out through a court-sanctioned acquisition of Glencore by Rio Tinto.

Glencore’s ordinary shares are listed on the London Stock Exchange. Following the announcement, Glencore shares jumped by more than 8 percent early on Jan. 9, while Rio Tinto’s shares moved in the opposite direction, falling by about 3 percent.

Glencore cautioned that “there is no certainty that the terms of any transaction or offer will be agreed,” adding that nothing in the announcement should be interpreted as indicating agreed terms under the UK’s Takeover Code.

Rio Tinto added that it reserves the right to alter the structure or form of any potential offer, including the mix of consideration, should talks progress. Rio Tinto has until 5 p.m. London time on Feb. 5 to make an offer or to confirm it does not intend to proceed, unless the deadline is extended.

“A further announcement will be made in due course as appropriate,” the company said in a statement.

Industry Consolidation

Analysts said a full merger would create a global leader across a wide range of commodities, from iron ore and copper to cobalt and lithium, materials that are critical to infrastructure, manufacturing and the energy transition.

Derren Nathan, head of equity research at Hargreaves Lansdown, said on Jan. 9 that consolidation in the sector shows no sign of slowing.

A haulage truck at the Rio Tinto West Angelas iron ore mine in the Pilbara region of Western Australia, on July 9, 2014. Alan Porritt/AAP Image

“Last year’s theme of consolidation in the natural resources sector has shown no sign of let-up in the early part of 2026,” Nathan said.

He described the potential Glencore–Rio Tinto deal as “the mother of all mining deals” and one that could see Rio Tinto “scoop up some or all of Glencore’s assets.”

Nathan noted that mergers and acquisitions do not automatically create value for investors.

“But M&A isn’t an automatic path to extracting value for investors, with Rio’s Australian shares down 6 per cent and Glencore ending Thursday in negative territory,” he said.

The talks come as the mining sector sees renewed interest in large-scale mergers, driven by rising costs, the need for scale, and growing demand for metals used in energy transition technologies.

This week, Canada approved a merger between Teck Resources and Anglo American, clearing a major hurdle for a deal announced in September to form Anglo Teck, a copper-focused company valued at about $70 billion.

Reuters contributed to this report.