Overview
- Rio Tinto said it would not make an offer by the Feb. 5 UK deadline, while Glencore argued the proposed terms undervalued its business, especially copper, and objected to Rio retaining both the chair and CEO roles.
- Glencore shares fell roughly 8–11% in London as Rio dipped modestly, and Australian investors later cheered Rio’s decision as capital discipline with its local shares edging higher.
- People familiar with the talks said Glencore sought about 40% of a combined group, highlighting a disagreement over ownership split and acquisition premium that neither side could bridge.
- This is the latest in a series of failed attempts to combine the companies, following approaches in 2014 and renewed but unsuccessful discussions in 2024.
- Under UK rules Rio cannot reengage for six months, and Reuters reports Glencore is expected to prioritise disposals such as a planned Kazzinc stake sale while pursuing its goal to lift copper output to 1.6 million tonnes by 2035.