Global Miners Eye Mega-Merger to Meet Copper Demand

Glencore and Rio Tinto engaged in brief merger discussions last year to potentially boost their copper assets amidst growing demand from the clean energy sector. Although the talks stalled, the merger would have created a mining giant with a market value exceeding that of BHP, the current leader.

Glencore and Rio Tinto were engaged in preliminary merger talks last year, as reported by a source to Reuters. However, these discussions have since been abandoned as global mining companies hurry to increase their copper investments.

Late last year, Glencore approached Rio Tinto in hopes of merging, but the talks did not progress, according to the source. Reports by Bloomberg News on Thursday indicated that both companies explored the potential deal seriously at an early stage. The drive for these talks stemmed from the miners' strategies to grow their involvement in metals, like copper, that are crucial for the clean energy revolution.

Previously, BHP made a $49 billion offer to acquire Anglo American with similar motivations, though it fell through due to structural issues. A Glencore-Rio merger would result in an industry-defining entity with a market valuation surpassing $158 billion, eclipsing BHP's current valuation of $126 billion. Both Rio Tinto and Glencore have declined to comment on the discussions.

(With inputs from agencies.)