Rio Tinto rejects speculation regarding possible merger with Glencore

Australian iron ore giant Rio Tinto has poured cold water on speculation in the media regarding the possibility of a merger between the company and international commodities producer and trader Glencore.
 
Referring to the discussions between the two companies in July this year regarding a potential merger, the Rio Tinto board stated that, after consultation with its financial and legal advisers, they concluded unanimously that a merger was not in the best interests of Rio Tinto's shareholders. The board's rejection was communicated to Glencore in early August and there has been no further contact between the companies on this matter.
 
Rio Tinto chairman Jan du Plessis commented, "The board believes that the continued successful execution of Rio Tinto's strategy will allow Rio Tinto to increase free cash flow significantly in the near term and materially increase returns to shareholders. Rio Tinto's shareholders stand to benefit from the very considerable value that this will generate."