Shares in Glencore PLC (LSE:GLEN) surged on Friday morning after it over a $260 billion all-share merger with Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) that would create the world’s largest mining group.
The deal, if completed, would mark one of the biggest corporate tie-ups in the sector’s history, bringing together two of the most influential players in global commodities at a time of growing pressure to secure long-term supplies of copper, a metal seen as vital to the global energy transition.
Antofagasta, the UK’s largest pure-play copper miner, also rallied on the news as investors bet on further consolidation in the space.
The talks come amid surging copper prices and rising competition for assets. Supply remains tight, and analysts widely expect deficits to deepen over the coming decades as demand from electric vehicles, grid upgrades and clean energy infrastructure accelerates.
Glencore has positioned itself as a copper-focused growth story, with plans to double output by the mid-2030s. Rio Tinto, under chief executive Simon Trott, has been streamlining its business and focusing on critical minerals.
One potential sticking point is coal. Rio exited the sector years ago, while Glencore is still restructuring its coal portfolio — a move that could help smooth negotiations if a deal progresses.
In early trading, Glencore led the FTSE 100 leaderboard with an 8% rise, while Rio was down 2.3%. Anto posted a 2.7% gain.