Glencore confirms all-share merger talks with Rio Tinto 

“Glencore notes recent media speculation and confirms that it is in preliminary discussions with Rio Tinto plc and Rio Tinto Limited about a possible combination of some or all of their businesses, which could include an all-share merger between Rio Tinto and Glencore,” the Swiss-headquartered group said. It added the parties’ expectation was that any merger would be through the acquisition of Glencore by Rio Tinto by way of a scheme of arrangement, adding there was no certainty a deal would be concluded.

The  two companies had restarted discussions last year, adding it would result in the creation of the world’s largest miner with an enterprise value of more than $260bn. It was unclear whether Glencore’s marketing division would form part of the combined unit although the groundwork had already been laid for the possible spin out of Glencore’s coal assets – a mineral from which Rio Tinto has distanced itself. Last year Glencore formed an Australian subsidiary to hold its coal making it easier to sell or spin out.