Glencore-Tinto: What to know about mining's biggest merger

Anglo-Australian metals giant Rio Tinto is in talks to acquire Swiss competitor Glencore, potentially creating the world's largest mining firm at a time of soaring demand for copper.

Here's how things stand ahead of a takeover bid deadline set for Thursday.

Birth of a giant

Mining behemoth Rio Tinto — listed in both London and Sydney — extracts iron ore, copper, aluminium and lithium.

Glencore, headquartered in Switzerland but listed in London, is a major player in commodities trading but also active in nickel, cobalt, coal and, critically, copper.

A merger, expected to take the form of an all-stock acquisition, would create a company valued at $260 billion — the world's largest mining firm.

Glencore-Tinto would be a "global leader" both in metals used in heavy industry like iron ore and those critical to the green energy transition such as copper, cobalt and lithium, said Derren Nathan, head of equity research at Hargreaves Lansdown.

And it would also help see off competitors at a time of broad consolidation in mining.

In November, Australian giant BHP abandoned plans to acquire British company Anglo American, which would have created the world's largest copper mining group.

Copper in the crosshairs

Any deal would also offer Rio the chance to massively expand its stake in copper.

Driven by soaring demand fuelled by its use in everything from data centres to green energy technology, the price of the red metal has soared to record highs.

Glencore, with its extensive stakes in copper mines from the Democratic Republic of Congo to Australia and South America, is poised for massive profits.

CEO Gary Nagle has vowed to make the group one of the world's largest copper producers, with plans to nearly double production to 1.6 million tonnes per year by 2035.

Rio's position is much trickier, according to Bloomberg Intelligence analyst Alon Olsha.

"As miners race to build copper exposure, Rio's outsized iron-ore franchise makes the pivot inherently harder, limiting how quickly earnings can shift toward the red metal," he explained.

While Rio Tinto's copper production did increase by five percent in the fourth quarter of 2025 thanks to the expansion of its underground operations at the vast Oyu Tolgoi mine in Mongolia, it still only accounts for a quarter of profits.

In the absence of another major new project "Glencore would provide medium and long-term options", said Olsha.

Coal divide

Looming over the deal are long-running debates within mining on whether to divest from coal and other fossil fuels.

While Rio Tinto and Anglo American are dropping their coal assets, Glencore has fiercely defended its decision to retain its mines and in August said it was abandoning plans to separate the business from the rest of the group.

Its continued coal business has drawn considerable criticism from both environmental organisations and investors, and could be a major point of contention with Rio Tinto.

"Just how Glencore's coal and trading arms fit in with Rio's business model, and push for improved sustainability credentials, are key questions to answer," Nathan of Hargreaves Lansdown said.

One likely scenario is that Rio could acquire Glencore "in its entirety" before later selling off the coal division, according to the analysis firm CreditSights.

Initial talks fail

An initial round of talks between the two failed a year ago.

But negotiations were reported to have restarted last month. Glencore has said it expected a potential merger to take place through an acquisition by Rio Tinto, which had until February 5 to submit a takeover bid.

Bloomberg, citing sources close to the matter, has reported that this deadline could be pushed back due to intense negotiations over the deal's value.

Any merger would need "careful stitching" to avoid unwanted asset overlaps, research firm CreditSights said.

"Culturally, Rio Tinto is traditionally seen as conservative and focused on stability, whereas Glencore is known for its aggressive approach and constantly pushing the envelope in its operations," the report added.

"This cultural divide might pose challenges in integration and decision-making if a merger were to proceed."