Shares in commodities giant Glencore surged by more than 8% on Friday morning, 9 January 2026, after the firm confirmed it is in preliminary discussions with rival Rio Tinto over a potential mega-merger.
Details of the Potential Deal
The two mining behemoths informed investors they are exploring a "possible combination of some or all of their businesses." This could involve an all-share merger, with Rio Tinto likely being the acquirer of Switzerland-based Glencore. However, both companies stressed that there is no certainty a formal offer will be made.
Under UK takeover rules, a deadline of 5 February 2026 has been set for any firm bid to be tabled. This is not the first time the pair have held talks; a previous attempt to agree on a tie-up in 2024 collapsed due to disagreements over the terms.
Creating a Mining Colossus
A successful merger would create the world's largest mining company by some margin. The combined entity would boast a staggering market capitalisation of approximately $200 billion (£150 billion).
The deal would unite complementary portfolios. Glencore is a powerhouse in copper, cobalt, and nickel production, while Rio Tinto is a dominant force in iron ore and has significant operations in aluminium and diamonds.
Sector-Wide Consolidation Trend
This potential blockbuster deal highlights a wave of consolidation sweeping the global mining sector. Companies are seeking scale to expand operations and meet evolving demand for critical metals.
This trend was evident last year when Anglo American agreed to merge with Canada's Teck Resources to form a copper production leader, Anglo Teck. That deal followed Anglo American rebuffing approaches from BHP Group and Glencore's own failed $22.5 billion bid for Teck in 2023.
While Glencore's share price jumped on the news, shares in its larger rival and prospective buyer, Rio Tinto, dipped by around 3% during Friday morning trading.
