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FTSE 100 Live: Glencore Surges on Rio Tinto Talks, Sainsbury’s Under Pressure
Rio Tinto shares dropped over 6% after confirming buyout talks with Glencore, potentially creating a $US207 billion mining giant amid mixed Australian market movements.
- Market response followed Rio Tinto's confirmation of buyout talks with Glencore, as shares fell more than 6%, hitting lows not seen since December 19.
- The talks centre on scale and copper, potentially creating a mega-miner worth more than $US200 billion amid rising copper demand and supply shortages.
- Sector moves showed energy strength while materials slipped amid the market wobble, as the ASX 200 traded at 8,730 with 97 stocks gaining and 98 in the red, and Codan surged over 19% forecasting 52% profit growth.
- Market advisers said any deal would likely force divestments and dilution, with Hillier warning a high premium could destroy shareholder value and an all-stock deal unlocking $9 billion in Australian dividend franking credits.
- Beyond scale, the merger raises legacy and integration risks tied to past controversies, as Rio owns 30% of Escondida and develops Oyu Tolgoi, while both face issues from Juukan Gorge and Glencore's history.
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13 Articles
13 Articles
Coverage Details
Total News Sources13
Leaning Left3Leaning Right2Center1Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 17%
R 33%
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