Rio, Glencore terminate merger talks over lack of premium

RIO Tinto terminated merger discussions with Glencore on Thursday after refusing to offer a control premium for the Swiss headquartered business.In its announcement, Rio Tinto said “it could not reach an agreement that would deliver value to its shareholders”.“Rio Tinto assessed the opportunity and came to this view through the disciplined lens set out at its Capital Markets Day in December 2025 prioritising long-term value and delivering leading shareholder returns,” it said.Glencore shed more light on the failed discussions, however, saying in a statement that it would have expected a control premium for its shares as a key element of Rio’s offer was to nominate a board chair and CEO, presumably its incumbent Simon Trott.When Rio Tinto announced on January 8 that it had opened talks with Glencore it said a  merger would be through an offer of shares for Glencore. Some investors in Australia said soon after the announcement that Rio’s offer ought not contain a premium.Said Glencore: “The key terms of the potential offer were Rio Tinto retaining both the chairman and CEO roles and delivering a proforma ownership of the combined company which, in our view, significantly undervalued Glencore’s underlying relative value contribution to the combined group, even before consideration of a suitable acquisition control premium.“We concluded that the proposed acquisition on these terms is not in the best interests of Glencore shareholders”.Glencore added Rio Tinto’s offer did not reflect its “through the cycle relative value, including not adequately valuing our copper business, and its leading growth pipeline, and apportioning material synergy value potential”.“Glencore’s standalone investment case is strong,” it added.Under the terms of the UK takeover code, Rio Tinto had until today to make an offer for Glencore, or state that it does not intend to do so. In terms of the regulations, however, it can reopen discussions in the event a third party steps in with a bid for Glencore.The post Rio, Glencore terminate merger talks over lack of premium appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com