(AOF) – Rio Tinto, an Anglo-Australian mining group, has started discussions with Glencore (Anglo-Swiss raw materials trading, brokerage and extraction company) to merge their activities, according to information reported by Bloomberg. Following this rumor, Rio Tinto gained 1.47% to 5,004 pence, posting one of the strongest increases in the FTSE 100. Within the same index, Glencore rose 2.72% to 380.1 pence. If it materializes, this merger would become the largest ever in the sector.
Discussions took place late last year, but are not currently underway, a source familiar with the matter told Bloomberg.
If the two groups reach an agreement, they would become the major competitor of BHP, Australian producer of iron, diamonds, uranium, coal, oil and bauxite. Rio Tinto has a market capitalization of $103 billion, Glencore is valued at almost 47 billion pence while BHP is worth $126 billion.
Last May, BHP withdrew its $49 billion acquisition offer from Anglo American. The latter did not want to give the Australian mining group more time to discuss its takeover.
-Last October, Rio Tinto announced the acquisition of Arcadium Lithium in an all-cash transaction at a price of $5.85 per share. The transaction represents a 90% premium to the closing price of $3.08 per Arcadium share on October 4. It values Arcadium at around $6.7 billion. Rio Tinto has thus acquired Arcadium’s activities in the field of lithium, and aims to become a world leader in raw materials linked to the energy transition: aluminum, copper and high-quality iron ore.
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