Rio Tinto and Glencore restart talks over mega-merger that would create the world's largest mining firm

Core Viewpoint - Rio Tinto and Glencore are in discussions for a potential $260 billion merger that could create the world's largest mining company [1] Group 1: Merger Discussions - Preliminary discussions are ongoing regarding a possible combination of some or all of their businesses, potentially through an all-share merger [1] - The current expectation is that the merger would involve Glencore being acquired by Rio Tinto via a Court-sanctioned scheme of arrangement [2] - Rio Tinto has until 5 p.m. London time on February 5 to announce a firm intention to make an offer for Glencore or state that it does not intend to make an offer [2] Group 2: Historical Context - Previous merger talks in late 2024 collapsed due to valuation issues and concerns regarding Glencore's coal mines [3] - In August, Rio Tinto's CEO announced a reorganization aimed at cutting costs and unlocking up to $10 billion from its asset base, focusing on iron ore, aluminium, lithium, and copper [3] Group 3: Market Context - A merger between Rio Tinto and Glencore would contribute to the recent M&A activity in the mining sector, following Anglo American and Teck Resources' $66 billion merger [4] - The renewed discussions are influenced by rising demand for copper, with prices reaching an all-time high of $13,000 per ton this week [4]