Global mining giants Rio Tinto (ASX: RIO) and Glencore have confirmed they have held early discussions on a potential merger that would create the world's largest mining company.
Baar, Switzerland headquartered Glencore first reported the news earlier this morning and was followed an hour later by Rio Tinto reporting the talks to the ASX.
The merger would bring together mining operations covering a range of commodities from operations across the globe and significant combined market caps of more than $310 billion.
Media agencies have estimated that the combined entity would have an enterprise value of approximately $388 billion.
Preliminary discussions
Rio told the ASX that the two companies have been engaging in preliminary discussions about a possible combination of some or all of their businesses, which could include an all-share merger between Rio Tinto and Glencore.
"The parties’ current expectation is that any merger transaction would be effected through the acquisition of Glencore by Rio Tinto by way of a court-sanctioned scheme of arrangement," Rio Tinto informed the ASX.
"There can be no certainty that an offer will be made or as to the terms of any such offer, should one be made." In its release, Glencore confirmed recent media speculation on the initial talks.
Major Australian impact
The merger would have a significant impact on the Australian mining sector, with both companies being major employers across the nation.
Rio employs more than 23,000 people in Australia, almost half of its global business and employees.
In sites from the northern tip of Queensland to the Kimberley in Western Australia it produces commodities such as iron ore, gold, copper, salt, bauxite, alumina and aluminium.
Glencore in Australia employs more than 6,800 workers at 20 active mining operations producing six primary commodities.
Decision deadline
Rio Tinto has until 5.00pm (London time) on 5 February 2026 to either announce a firm intention to make an offer for Glencore or announce that it does not intend to make an offer.
This deadline may be extended with the consent of a takeover panel.
