Overview
- Both companies confirmed the negotiations have ended and said they will pursue independent strategies.
- Rio Tinto said it could not reach a value-creating agreement before the regulatory deadline, closing the door on a deal that had been on and off for more than a decade.
- Glencore said the sticking points were governance and ownership structure, arguing the proposal undervalued its business, particularly its copper division and growth projects.
- London trading saw Glencore drop as much as 10% intraday and close down about 7%, while Rio Tinto fell roughly 2.6%.
- People familiar with the talks said Glencore sought terms that would give its investors around 40% of a combined group, as both sides jockeyed for position in the industry’s race to secure copper supply.