Failed Rio Tinto-Glencore Merger: A Setback or a New Beginning for Mining Sector Consolidation?

A merger undone by the numbers

Rio Tinto chief executive Simon Trott. Image: Rio Tinto When the Rio Tinto–Glencore merger talks stalled again last week, the culprit this time was crystal clear: value. The numbers simply didn’t add up. Rio walked away after it said extensive due diligence revealed that any combination would fail to deliver the shareholder value it demands. The proposed ownership split heavily favoured Rio with the Australian Financial Review reporting a 69 to …

Rio Tinto and Glencore abandon merger talks after governance dispute

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Failed Rio Tinto-Glencore Merger: A Setback or a New Beginning for Mining Sector Consolidation?

The collapse of merger talks between Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and Glencore (LSE:GLEN,OTCPL:GLCNF) has ended what would have been the mining industry’s largest-ever deal.The two companies confirmed last week that discussions over a potential US$260 billion combination have been abandoned after they failed to agree on terms that would deliver shareholder value. The deal, revived late last year, would have created the world’s largest di…