Rio Tinto Ltd (LSE:RIO) and Glencore PLC (LSE:GLEN) are likely to announce a request to extend ongoing merger discussions ahead of a UK regulatory deadline on Thursday, according to a Reuters report citing sources familiar with the negotiations.
However, the report also noted that Rio Tinto may still decide not to proceed with the transaction, as some investors are reportedly urging the company to provide stronger evidence that a potential deal would deliver shareholder value.
In January, Rio Tinto and Glencore confirmed they were holding preliminary discussions regarding a possible merger that could result in the creation of the world’s largest mining group. The companies have previously explored combination opportunities, with similar discussions having taken place in 2024 and earlier in 2014, although neither resulted in a completed transaction.
Under UK takeover regulations, the companies must, by February 5, either announce a firm offer, withdraw from the negotiations, or formally request an extension to continue discussions. According to Reuters, Glencore is willing to allow Rio Tinto to pursue additional time to evaluate the potential transaction.
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