Rio Tinto's Mongolian Friction Threatens Long-Term ROI

2026-02-09 10:59:21 ET

The Collapse Of The Merger Between Rio And Glencore

Rio Tinto Group ( RIO ) announced in early February that it's not going to merge with Glencore ( GLCNF ), " scuttling a potential mega-merger that could have created the world's largest mining company," as the Seeking Alpha News team noted . Based on the available sources, the firms haven't agreed on Glencore's valuation. When RIO walked away, the market repriced Glencore lower because it was a target (before the news broke, the market was pricing a premium on the stock, expecting that RIO would pay the price). But RIO's shareholders seem to have liked the fact that there will be no merger (at least in the foreseeable future), because effectively, Rio Tinto avoided the dilution risk and the complexity of Glencore's large businesses integration....

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