Rio Tinto's talks to buy Glencore put pressure on BHP

Rio Tinto is in preliminary talks to buy Glencore, a move that could drive consolidation in the copper-focused mining sector and increase pressure on BHP to respond.

Rio Tinto is in preliminary talks to buy Glencore and create a larger industry player. The discussions are reported as potentially prompting consolidation in the copper-hungry mining sector. Analysts and bankers say such a move could place pressure on BHP to consider a response. Rio reportedly has until February 5 to make a formal offer, a deadline that could be extended. Key facts: - The talks between Rio Tinto and Glencore are at an early stage and have included prior discussions that did not reach agreement. - Depending on the final terms, the transaction could rank among the biggest M&A deals and could create a company reported as worth almost $207 billion. - BHP has a reported market capitalisation of about $161 billion and is cited by several analysts as the most likely potential interloper or rival bidder. - Sources say regulatory authorities would likely require asset disposals to address competition concerns if a deal proceeded. - Copper demand — driven by AI adoption and the energy transition — is a central reason given for consolidation and deal interest. - Rio has a February 5 deadline to make a formal offer, subject to possible extension. Summary: A successful deal would reshape the competitive landscape in copper and could increase pressure on BHP to act, according to analysts cited in the reporting. The talks remain preliminary and Rio has a deadline of February 5 to make a formal offer; regulatory review and likely asset divestments are reported as probable steps if talks advance. Undetermined at this time.