The Anglo-Australian miner said it was no longer considering a “merger or other business combination” after determining it “could not reach an agreement that would deliver value to its shareholders”.
Glencore similarly rejected the proposed structure, stating it “significantly undervalued Glencore’s underlying relative value contribution to the combined group” and failed to properly recognise its copper assets and growth pipeline.
Valuation Clash Derails Historic Deal
Talks confirmed in January centered on combining parts, or potentially all, of the companies through an all-share transaction that would have produced a mining giant with a market capitalisation exceeding $200 billion.
However, negotiations collapsed at the UK regulatory deadline requiring Rio Tinto to either submit a firm offer or withdraw. Under takeover rules, the company is now barred from launching another bid for six months unless regulators grant special approval.
The breakdown marks the third failed attempt in two decades to unite the two resource heavyweights.
At the core of the dispute were governance and ownership terms that would have allowed Rio Tinto to retain both chairman and chief executive roles while assigning equity proportions that Glencore viewed as inadequate even before factoring in a control premium.
“We concluded that the proposed acquisition on these terms is not in the best interests of Glencore shareholders,” the company said.
“It does not reflect our view on long-term, through-the-cycle relative value, including not adequately valuing our copper business and its leading growth pipeline.”
Africa emerges as strategic battleground
The failed merger carries notable implications for Africa, where both companies operate assets tied to minerals essential for clean energy technologies, electric vehicles and advanced electronics.
Glencore’s most strategic holdings are concentrated in the Democratic Republic of Congo (DRC), including the Mutanda Mining and Kamoto Copper Company operations in Lualaba province, among the world’s most important sources of copper and cobalt.
The company also controls Mopani Copper Mines in Zambia’s Copperbelt, an integrated complex comprising underground mines, processing facilities and a refinery.
U.S.-backed consortium targets Congo assets
Investor competition for these resources is intensifying. Glencore is in talks to sell a 40% stake in its copper and cobalt operations in the Democratic Republic of Congo to the Orion Critical Minerals Consortium, a U.S.-backed group that includes Orion Resource Partners and the U.S. International Development Finance Corporation.
The transaction, valued at approximately $9 billion, could rank among the largest U.S. investments in Congo’s mining sector in nearly a decade, reflecting growing Western interest in securing access to Africa’s critical minerals.
The development comes amid a broader wave of consolidation across the global mining industry, highlighted by the $53 billion merger of Anglo American and Canada’s Teck Resources, which created one of the world’s largest copper producers.
Together, these moves underscore intensifying geopolitical competition for transition metals, as Western governments and investors seek to diversify supply chains and reduce reliance on Chinese-controlled processing capacity.
Consolidation pressures persist
Despite the setback, Glencore said its standalone investment case remains strong, pointing to a diversified commodities portfolio, streamlined operations and one of the sector’s most established marketing networks.
“We remain focused on delivering on our 2026 priorities, achieving our operational targets and progressing our organic growth volumes, all with the objective of supporting long-term value creation for shareholders,” the company said.