Rio Tinto has engaged JPMorgan, Evercore, and Macquarie as advisers for a potential acquisition of Glencore, according to a source familiar with the matter. The deal could create the world’s largest mining company, valued at over $200 billion. Rio Tinto is a leading global mining group that focuses on finding, mining, and processing the Earth’s resources. Its products include iron ore for steel, aluminium, copper, and minerals necessary for human progress.
The engagement of these banks highlights the significance of the potential transaction, with advisory fees estimated to exceed $100 million. This move signals a renewed push for consolidation within the global mining sector, as companies compete to secure reserves of essential metals such as copper, vital for the energy transition and advancements in artificial intelligence. Glencore has not yet formally appointed an adviser, though Citi has advised them on prior deals.
Glencore, a commodity trading and mining company, is a major producer and marketer of various commodities, including metals, minerals, and energy products. It operates a diversified global business, connecting producers and consumers through its extensive network of operations. Past attempts at merging the two giants have been unsuccessful. Rio Tinto rejected a merger offer from Glencore in 2014, citing it was not in the best interest of shareholders. Merger talks also concluded without an agreement in late 2024.
