Australian miner Rio Tinto has announced that it will not pursue a merger or any other business combination with Switzerland-headquartered miner Glencore, concluding that an agreement could not be reached that would create sufficient value for its shareholders.
The company stated that it had assessed the potential transaction in line with its capital allocation principles. Based on this evaluation, Rio Tinto decided to discontinue discussions regarding a possible combination of some or all of the two companies’ businesses, which had been disclosed earlier this year, as SteelOrbis reported previously.
Glencore rejects proposed deal structure
Glencore, for its part, said it had rejected the merger terms proposed by Rio Tinto, arguing that the structure would have significantly undervalued its contribution to the combined group.
According to the company, the proposed framework would have left Rio Tinto holding both the chairman and chief executive roles, while assigning ownership levels that did not adequately reflect Glencore’s underlying value.
Glencore emphasized that it is well positioned to meet both current energy demand and the growing need for transition-related commodities.
Following the breakdown of the talks, Glencore said it will continue focusing on its 2026 priorities, operational targets, and organic growth projects to support long-term shareholder value.
