Rio Tinto and Glencore restart talks over mega-merger that would create the world's largest mining firm

Rio Tinto and Glencore person confirmed they are backmost successful talks astir a imaginable $260 cardinal megadeal that could signifier the world's largest mining firm.

"Rio Tinto and Glencore person been engaging successful preliminary discussions astir a imaginable operation of immoderate oregon each of their businesses, which could see an all-share merger betwixt Rio Tinto and Glencore," Rio Tinto, the larger of the 2 companies, said successful a connection aboriginal Friday morning.

"The parties' existent anticipation is that immoderate merger transaction would beryllium effected done the acquisition of Glencore by Rio Tinto by mode of a Court-sanctioned strategy of arrangement."

Rio Tinto's Australia-listed shares fell 6.3% connected Friday.

CNBC has approached some companies for further comment. Rio Tinto said it had until 5 p.m. London clip (12 p.m. ET) connected Feb. 5 to either denote a steadfast volition to marque an connection for Glencore oregon denote that it does not mean to marque an offer.

Rio Tinto and Glencore discussed a merger successful precocious 2024, but talks collapsed implicit issues specified arsenic valuation and the aboriginal of Glencore's ember mines.

Back successful August, Rio Tinto CEO Simon Trott announced a reorganization of the business. Trott promised to chopped costs and unlock up to $10 cardinal from its plus basal by making the institution absorption connected 3 halfway merchandise groups — robust ore, aluminium and lithium and copper.

A woody betwixt Rio Tinto and Glencore would adhd to caller M&A enactment successful the mining sector, aft Anglo American and Canada's Teck Resources agreed to merge successful a $66 cardinal woody past September. The merger is expected to make 1 of the world's apical 5 copper producers.

Renewed talks betwixt Glencore and Rio Tinto person besides been by rising request for copper, with prices of the reddish metallic hitting an all-time precocious of $13,000 a ton this week.