Rio Tinto and Glencore in talks over £200bn merger

Glencore and Rio Tinto are reported to be in preliminary discussions about a possible combination of some or all of their businesses, which the article describes as a roughly £200 billion deal; under UK City takeover rules Rio Tinto has until 5pm on February 5 to make a firm offer or walk away.

Glencore and Rio Tinto have begun preliminary discussions about a possible combination of some or all of their businesses, the companies said, in talks that the article links to rising copper prices and industry consolidation. The discussions could include an all-share merger and would be large enough to create what the article describes as roughly a £200 billion mining group. These talks follow earlier negotiations that collapsed nearly a year ago and come amid competition between major mining groups for copper assets. Key facts: - Glencore said it is in preliminary discussions with Rio Tinto about a possible combination that could involve some or all of their businesses and an all-share merger was cited among potential structures. - Rio Tinto confirmed it has been engaging in preliminary discussions about a possible combination of some or all of its businesses with Glencore. - The article describes the combined group as being on the order of £200 billion and potentially the world's largest mining company. - Copper prices have risen to record highs above $13,300 a ton this week, a factor the article identifies as intensifying competition in the market. - Under UK City takeover rules, Rio Tinto has until 5pm on February 5 to make a firm offer for Glencore or to walk away, as noted in the article. Summary: If pursued, a deal would bring together two of the largest FTSE 100 mining companies and could prompt questions about their future listings and market structure. The next formal milestone reported is the takeover-rule deadline of 5pm on February 5 for Rio Tinto to make a firm offer or cease pursuing a bid; other outcomes are undetermined at this time.