The super merger negotiations that were expected to create the world's largest mining company have collapsed. Rio Tinto announced on Thursday that it has abandoned merger talks with Glencore, as the two sides failed to reach an agreement on the transaction valuation, bringing an end to this world-class mining consolidation plan valued at over $200 billion.
Rio Tinto stated in a statement that it has determined that it cannot reach an agreement that would create value for shareholders. This marks the third failed attempt at a merger between the two mining giants, with previous negotiations occurring in 2014 and 2024. Glencore responded in a statement that the key terms proposed by Rio Tinto &#34;seriously undervalued Glencore's potential relative value contribution,&#34; particularly regarding the value of its copper business and growth pipeline. Rio Tinto attempted to retain the positions of chairman and CEO after the merger but failed to provide sufficient premium.
Media reports indicate that before announcing the decision to abandon the talks, Rio Tinto completed due diligence but could not agree to the high acquisition premium requested by Glencore. In this negotiation, Glencore sought to have its investors hold about 40% of the merged company's shares after a stock swap, but Rio Tinto could not accept the premium proposed by Glencore, and Glencore was unwilling to adjust its position, leading Rio Tinto to ultimately abandon the negotiations.
After the news of Rio Tinto's withdrawal from the talks broke, Glencore's stock price listed in London sharply declined, dropping to 456 pence at one point, with an intraday drop of 10.8%. Rio Tinto's stock price also hit a new intraday low, falling 2.9%. According to UK takeover rules, after this abandonment of negotiations, Rio Tinto is prohibited from seeking to acquire Glencore again for at least six months.
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<h2>Core of the Negotiation Breakdown: Valuation Discrepancy and Management Control Dispute</h2>
Glencore clearly pointed out the crux of the negotiation failure in its response to Rio Tinto's statement. Glencore stated in its announcement:
<blockquote>
&#34;The key terms of the potential offer are Rio Tinto retaining the chairman and CEO positions and providing the equity ratio of the merged company, which we believe seriously undervalues Glencore's potential relative value contribution to the merged group, and does not even consider an appropriate control premium for the acquisition.&#34;
</blockquote>
Glencore further emphasized: &#34;Our conclusion is that the proposed acquisition under these terms does not serve the best interests of Glencore shareholders. It fails to reflect our view of long-term, cyclical relative value, including the inadequate assessment of our copper business and its leading growth pipeline, as well as the failure to allocate significant potential synergy value.&#34;
Rio Tinto stated in its announcement that it has evaluated this opportunity against the strict standards set during its December 2025 capital markets day, prioritizing long-term value and achieving leading shareholder returns. According to UK takeover rule 2.8, Rio Tinto and any parties acting in concert with it will be restricted unless they obtain Glencore's board consent or specific circumstances arise, such as a third-party offer.
<h2>Copper Resource Competition Fuels Merger Wave</h2>
This potential deal is the latest case in a series of merger attempts among the world's top mining companies. As mining giants seek to expand and scale up their copper businesses to gain more attention from global investors, super merger activities in the mining sector have significantly heated up
Due to the increasing demand for copper driven by the construction of more electric vehicles, renewable energy infrastructure, and data centers around the world, mining companies are beginning to seek large acquisitions after years of dormancy. New mines typically take years or even decades to develop and carry the risk of cost overruns, making mergers and acquisitions a faster way for mining companies to increase production compared to building new mines.
Rio Tinto has a market value of approximately $156 billion, while Glencore's market value is around $75 billion. A merger would double Rio Tinto's existing copper production, potentially making it the world's largest copper producer as copper prices approach historical highs, and add about 1 million tons of future copper capacity to its portfolio.
According to data from White &amp; Case, the value of mining deals is set to soar to its highest level in 13 years by 2025. This marks a shift in the attitude of mining executives, who have been cautious about large deals over the past decade due to having paid excessively for assets during the commodity boom led by China around 2011.
As the largest mining company by current market value, BHP Group has made several unsuccessful attempts to acquire Anglo American over the past two years. Anglo American has instead agreed to merge with Canadian Teck Resources, a deal that was approved by shareholders of both companies at the end of last year.
<h2>Glencore Emphasizes Independent Development Prospects</h2>
In the face of failed negotiations, Glencore fully articulated the advantages of its independent development in its announcement. The announcement stated, &#34;Glencore's independent investment case is strong. We have a diversified business across multiple commodities, supported by one of the best marketing franchises in the industry.&#34;
Glencore emphasized, &#34;We have optimized and streamlined our operational structure, which has promoted accountability and execution, supporting us in achieving key commodity production within guidance for the second consecutive year.&#34;
In terms of its copper business, Glencore expressed full confidence: &#34;We have an excellent copper project portfolio that provides us with a path to grow from being a significant copper producer to one of the largest producers in the world within the next decade.&#34;
The company clearly stated, &#34;We will continue to focus on achieving our priority goals for 2026, meeting operational targets, reducing risks, and successfully advancing organic growth, all aimed at creating long-term value for shareholders.&#34;
<h2>More than a Decade of Failed Attempts</h2>
Wednesday's announcement means that the attempt to merge Rio Tinto and Glencore has failed for the third time in over a decade. The idea of this merger first emerged before the global financial crisis in 2008, was revived in 2014 when Rio Tinto quickly rejected Glencore's informal approach, and was seriously discussed again in 2024, nearly ten years later.
In the 2014 negotiations, Rio Tinto stated that a merger was not in the best interests of shareholders. The 2024 discussions also failed to reach an agreement, similarly due to Rio Tinto's unwillingness to pay a high premium and cultural differences in management. Reports indicate that the most recent negotiations confirmed in January 2026 brought both parties closer to a deal than ever before, but they remain deadlocked over the valuation of Glencore's vast mining and trading business
Reports suggest that the failed negotiations echo other cases of ambitious mining deals falling through. BHP's $49 billion acquisition plan for Rio Tinto also collapsed due to concerns over the structure of the offer, despite the entire industry pushing for consolidation to address rising metal demand.
Rio Tinto appointed Simon Trott, the former head of its iron ore business, as CEO at the end of last year, tasked with the mission of unlocking significant value for shareholders from its vast asset portfolio. Like most major miners, Rio Tinto is prioritizing the expansion of its copper business, betting that this industrial metal will become a hot commodity as the world builds more electric vehicles, renewable energy infrastructure, and data centers.
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GLNCY

Rio Tinto plc announced that it has abandoned merger talks with Glencore due to the failure of both parties to reach an agreement on the transaction valuation. This marks the third failed attempt at a merger between the two companies, with Glencore's stock price dropping over 10% during trading. Rio Tinto stated that it could not reach an agreement that would create value for shareholders, while Glencore believed that Rio Tinto's key terms undervalued its potential. According to UK takeover rules, Rio Tinto is prohibited from seeking to acquire Glencore again for six months

- The merger negotiations between Rio Tinto and Glencore aimed at creating the world's largest mining company have collapsed due to valuation disagreements.  
- Rio Tinto announced it could not reach a deal that would create shareholder value, marking the third failed attempt to merge since 2014.  
- Following the announcement, Glencore's stock price dropped significantly, as the companies remain unable to agree on terms, impacting their future strategic positions in the copper market.

Wallstreetcn

The mining giant worth over 200 billion "collapsed": Rio Tinto abandons merger talks, Glencore drops over 10% during trading