Rio Tinto Interested in Takeover of Glencore to Form World’s Largest Mining Company
On 8 January 2026, Glencore (LSE: GLEN) and Rio Tinto (LSE: RIO) announced that they had started talks with a view to a possible merger. If the merger is successful, it will lead to the world’s largest mining company.
On the day of the announcement, Rio Tinto and Glencore had a market cap of USD 142 million and USD 65 million, respectively. Thus, the combined entity a combined market value of about USD 207 billion based on the stock prices on that day.
BHP is currently the largest mining company with a market cap of over USD 160 million. However, Zijin Mining from China and Southern Copper from the USA have surpassed Rio Tinto as gold and copper rose substantially over 2025.
| Rank | Company | Market Cap B USD | Primary Business | HQ |
|---|---|---|---|---|
| 1 | BHP | 162 | Iron, Copper, Coal | Australia |
| 2 | Zijin Mining | 146 | Gold, Copper, Zinc | China |
| 3 | Southern Copper | 144 | Copper, Silver, Zinc | USA |
| 4 | Rio Tinto | 135 | Iron, Aluminum, Copper | UK |
| 5 | Newmont | 124 | Gold, Copper | USA |
| 6 | Shenhua Energy | 119 | Coal, Power Generation | China |
| 7 | Agnico Eagle Mines | 98 | Gold | Canada |
| 8 | Freeport – McMoRan | 84 | Copper, Gold | USA |
| 9 | Barrrick | 83 | Gold, Copper | Canada |
| 10 | Grupo Mexico | 82 | Copper, Silver, Zinc | Mexico |
The merger would involve Rio Tinto undertaking an all-share buyout of Glencore. No details about the takeover premium of the new company structure were given as the talks are still at a preliminary stage. Under UK regulations, Rio Tinto has up to 5 February 2026 to make a formal offer for Glencore.
Rio Tinto’s business is mostly in iron ore. But the proposed merger would refocus the business on copper to take advantage of the copper boom, thanks to the buildout of #AI data centers and #EV manufacturing. On the other hand, demand for iron and steel has cooled down as the real estate market in China has undergone a bubble burst.
According to industry analysts, it was known that the two companies restarted talks of a possible merger at the end of 2025, after similar talks stalled in 2024. Glencore originatedas a trading company and is very opportunistic and results-focused. Rio Tinto has a long history in mining and is seen as a slow behemoth. Thus, the merger could be a synergistic complement, or it could turn out to be a corporate cultural shock.
The reactions of the stock markets appear to be in favor of the company being taken over. In the US, Glencore’s shares rose by 6%, whereas in Australia, Rio Tinto’s shares dropped by 6.3%.