After weeks of talks mining companies say they cannot reach a deal that delivers value for shareholders
Rio Tinto and Glencore have abandoned plans for a $260bn merger, walking away from a deal that would have created the world’s largest mining company.
Rio Tinto said it was no longer considering a “merger or other business combination” with Glencore after it “determined that it could not reach an agreement that would deliver value to its shareholders”.
Glencore said the key terms of the potential offer, which would have seen Rio keep both the chair and chief executive roles, “significantly undervalued Glencore’s underlying relative value contribution to the combined group”.
The company added the deal did not adequately value its copper business and growth pipeline, and concluded that the merger was not in the best interests of its shareholders.
