Rio Tinto shareholder backs Glencore bid to gain copper access.

Aluminum Corp. of China (Chinalco), a major Rio Tinto shareholder, is expected to support Rio’s potential acquisition of Glencore, a move that would increase Chinese exposure to copper; any deal would still need Chinese government approval.

Aluminum Corp. of China, known as Chinalco, is reported to be likely to support Rio Tinto’s potential acquisition of Glencore, according to people familiar with the matter. The proposed combination would increase Chinalco’s exposure to copper, an important metal for many industries. Any final approval would require sign-off from Chinese authorities, and Chinalco is said to be in talks with regulators. Rio and Glencore have confirmed they are in tie-up talks but have not provided details on a deal structure. Key details: - The article reports Chinalco currently holds 14.55% of Rio Tinto’s London-listed shares, close to a 14.99% holding threshold agreed with Australia at the time of its original investment. - Under UK Takeover Panel rules, Rio has until Feb. 5 to firm up its interest or walk away, the article says. - The article notes that when the deal was last seriously discussed in late 2024, talks stalled over Rio’s reluctance to pay a large premium. - Rio and Chinalco declined to comment, and Glencore and China’s State-Owned Assets Supervision and Administration Commission did not immediately respond to queries, the article reports. - The article recalls that China approved Glencore’s 2012 takeover of Xstrata with conditions, including the sale of a Peruvian copper mine. Summary: If the talks progress and receive the necessary approvals, the combination would materially change the scale of the companies involved and increase Chinese exposure to copper. Beijing’s antitrust and other regulators are expected to scrutinize any agreed details. Rio’s immediate procedural deadline is Feb. 5 to firm up its interest; further steps and outcomes are undetermined at this time.