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Rio Tinto’s bid for Glencore piles pressure on BHP
The proposed merger would create a $200 billion mining giant with $10 billion in cost synergies, driven by rising copper demand for AI and electric vehicles, Barclays said.
- On Thursday, Rio Tinto and Glencore announced preliminary discussions about a possible all-share merger that could add Glencore’s commodities trading arm and reshape industry rankings.
- Rising demand from EVs, AI data centres, and military needs has driven copper's surge from under US$10,000 to over US$13,000, prompting miner talks; Simon Trott, Rio CEO, has overseen this record-high rally.
- According to Barclays, the combined group could have a market value of more than US$2-billion and nearly US$17-billion in profits by 2026, with US$10-billion in synergies.
- Negotiations face governance and bargaining hurdles, including leadership fights and tough demands; Gary Nagle and Simon Trott confront challenges after three failed attempts, with asset cherry-picking and antitrust scrutiny also risking the deal.
- A successful tie-up would reshape the sector and could make Rio Tinto the world's biggest miner, marking a break from caution as Simon Trott, Rio CEO, embraces bold moves after five months.
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18 Articles
18 Articles
Glencore and Rio Tinto are making a new start for a merger. If they reach the finish line, the canton of Zug is facing an incision.
·Zürich, Switzerland
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DECRYPTAGE - Both companies have confirmed the discussions. The main challenge is to strengthen themselves in copper whose prices are blazing.
·Paris, France
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Rio Tinto could join the Swiss raw material giant Glencore. The joint group would be worth more than $200 billion on the stock market. But does the takeover make sense?
·Vienna, Austria
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Total News Sources18
Leaning Left0Leaning Right4Center7Last UpdatedBias Distribution64% Center
Bias Distribution
- 64% of the sources are Center
64% Center
C 64%
R 36%
Factuality
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