Rio Tinto has formally walked away from talks with rival Glencore to create the world’s largest mining company because they could not agree on terms that would deliver value for its shareholders.
Rio Tinto said it had assessed the proposed transaction but concluded the terms under discussion failed to meet its investment and capital allocation criteria.
“Further to the announcement of 8 January 2026, Rio Tinto confirms that it is no longer considering a possible merger or other business combination with Glencore,” the company said in a statement.
“Rio Tinto has determined that it could not reach an agreement that would deliver value to its shareholders.”
Rio Tinto said it assessed the opportunity and came to this view through the “disciplined lens” set out at its Capital Markets Day in December 2025 – prioritising long-term value and delivering leading shareholder returns.
The announcement ended weeks of market talk about a possible combination of two of the world’s largest diversified mining and commodities groups.
Glencore also confirmed the talks had ended after they were unable to reach an agreement on the structure and valuation of a potential combination.
The Swiss-based company said the terms proposed by Rio Tinto were not acceptable and significantly undervalued Glencore’s contribution to any merged entity.
“The Board of Glencore notes the announcement made by Rio Tinto earlier today confirming that it does not intend to make an offer for Glencore,” it said in a statement.
“The parties were unable to reach agreement on the terms of a combination.”
Under the proposed structure, Rio Tinto would have kept the Chairman and Chief Executive Officer roles in the combined group and allocated ownership in a way that failed to reflect Glencore’s underlying value.
Glencore said this assessment was made even before taking into account what it said would normally be an appropriate acquisition control premium.
As a result, the board concluded the proposed deal was not in the best interests of Glencore shareholders.
“It does not reflect our view on long-term, through-the-cycle relative value, including not adequately valuing our copper business, its leading growth pipeline, and apportioning material synergy value potential,” Glencore said.
Rio Tinto (ASX: RIO) shares had closed $2.30 (1.44%) lower at A$157.13 on Thursday, capitalising the company at $227.65 billion, prior to the announcement.
Glencore shares ended £13.40 (2.62%) down at £497.80 pounds, capitalising the company at £58.62 billion (US$79.3 billion) on Thursday.
