Shares in Glencore fell sharply on Thursday after talks over a potential merger with Rio Tinto collapsed, according to a statement released by the London-listed mining giant.
Glencore said it was dissatisfied with the terms of Rio Tinto’s proposed takeover, specifically citing concerns over the continued leadership structure within a combined entity. The company stated that Rio Tinto intended to retain both the chairman and chief executive officer positions.
“The key terms of the potential offer were Rio Tinto retaining both the chairman and chief executive officer roles and delivering a proforma ownership of the combined company which, in our view, significantly undervalued Glencore’s underlying relative value contribution to the combined group, even before consideration of a suitable acquisition control premium,” Glencore said in a stock market statement.
The company further asserted that the proposed acquisition did not adequately reflect the value of its copper business and its future growth potential, nor did it sufficiently account for potential synergy benefits.
Following the announcement, Glencore shares dropped 8 percent, closing at 470p. Rio Tinto shares also experienced a decline, falling 1.9 percent to 6,876p.
Rio Tinto confirmed that it had been unable to reach an agreement that would deliver value to its shareholders. “Rio Tinto 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 company said in a statement.
Glencore emphasized its confidence in its independent investment case, highlighting its “exceptional portfolio of copper projects” and its trajectory to become a leading global copper producer.
The breakdown in negotiations marks the latest chapter in a long-running discussion about a potential combination between the two mining giants. Talks had been revived last year with the appointment of Simon Trott as Glencore’s chief executive.
Sources indicate that Glencore had been seeking a higher acquisition premium, while Rio Tinto was firm on maintaining its existing leadership structure.
The failed merger attempt comes after the recent approval of a merger between Anglo American and Teck Resources, signaling a period of consolidation within the mining industry.
