Shares in Glencore fell sharply on Thursday after discussions about a significant merger with rival Rio Tinto ended without agreement. The London-listed mining company expressed dissatisfaction with Rio’s takeover proposal, which included Rio maintaining key executive positions within the merged entity.
Glencore stated in a stock market announcement that the proposed terms involved Rio Tinto retaining both the chairman and chief executive officer roles. This arrangement, according to Glencore, undervalued its contribution to the combined group, even before considering a suitable acquisition control premium. The firm concluded that the acquisition on these terms was not in the best interests of its shareholders, as it did not adequately value Glencore’s copper business and its growth potential.
Following the announcement, Glencore’s share price dropped by 8% to 470p, while Rio Tinto’s shares decreased by 1.9% to 6,876p. In its response, Rio Tinto stated it could not reach an agreement that would benefit its shareholders. The company evaluated the opportunity through a disciplined approach, as outlined at its Capital Markets Day in December 2025, focusing on long-term value and shareholder returns.
Glencore reiterated its strong standalone investment case, highlighting its exceptional portfolio of copper projects, which it believes will position it as one of the world’s largest copper producers within the next decade. The breakdown of these merger talks marks another chapter in the ongoing discussions between the two companies, which have seen repeated attempts to combine over the years, most recently reignited after the appointment of current chief executive Simon Trott.
The collapse of talks follows the recent merger approval of London-listed miner Anglo Resources and Teck Resources late last year.
