Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) is reportedly nearing the appointment of a new chief executive officer, with a decision expected later this month following final candidate presentations in London.
Chair Dominic Barton is prioritising candidates who are open to major merger and acquisition opportunities and focused on improving internal cost discipline, according to a Reuters report citing sources familiar with the search process.
Barton has discussed the possibility of “big ticket M&A” with stakeholders. Rio Tinto was previously approached by Glencore over an asset combination, but the talks ended quickly.
Analysts have speculated that such deals could be back on the table, and say any acquisition strategy may depend on the company’s share price performance, with RBC Capital Markets estimating that capital spending of between $30 billion and $35 billion over the next decade, with lithium growth projects perhaps pushed aside in favour of copper.
Rio Tinto, the world’s largest iron ore producer, is conducting an internal and external search for a new CEO after Jakob Stausholm announced in May that he is stepping down.
The company will report half-year results on July 30.