Skip to main contentSkip to navigationSkip to navigation
Rio Tinto mining
Rio Tinto is the world’s second-largest producer of iron ore. Photograph: Alan Porritt/AAP
Rio Tinto is the world’s second-largest producer of iron ore. Photograph: Alan Porritt/AAP

Rio Tinto denies reports of mining merger talks with Glencore

This article is more than 9 years old

Mining giant says Glencore approach was rejected in August and that there has been no further contact on the issue

Rio Tinto has said it rejected a merger approach in July from resources group Glencore and that there have been no further discussions between the companies about such a deal.

Rio Tinto released a statement on Tuesday after media reports said Glencore had reached out to Rio Tinto’s largest shareholder, China’s Chinalco.

A merger between the two would create the world’s largest mining company.

Rio Tinto said its board, after consultation with its financial and legal advisers, concluded unanimously that a combination was not in the best interests of its shareholders.

It said no discussions were taking place with Glencore. “The board’s rejection was communicated to Glencore in early August and there has been no further contact between the companies on this matter,” it said.

Rio Tinto’s chairman, Jan du Plessis, said the board believed the continued successful execution of its strategy would allow the company to increase free cash flow significantly in the near term and increase returns to shareholders.

A combined company would surpass BHP Billiton and be worth an estimated US$160bn (A$173.11bn) with market-leading positions in iron ore, copper, nickel, zinc and coal.

Rio is the world’s second-largest producer of iron ore. Glencore is not a significant producer of that commodity.

It has been suggested Glencore’s chief executive, Ivan Glasenberg, is frustrated with not being able to finalise a New South Wales coal joint venture with Rio Tinto that would achieve significant savings through synergies.

Explore more on these topics

Comments (…)

Sign in or create your Guardian account to join the discussion

Most viewed

Most viewed