Rio Tinto and Glencore are in talks for a potential all-share merger, with Rio considering acquiring some or all of Glencore’s business. The deal is driven by optimism over rising copper demand from renewables, electric vehicles, data centers, and electricity grids. Rio aims to reduce its iron ore dominance, with shares currently trading above fair value.

Under UK takeover law, Rio has until Feb. 5, 2026, to make a firm offer for Glencore. A full acquisition would be surprising, given Rio’s previous divestment of coal operations. Glencore should seize the high copper prices to sell its base metals business and potentially spin out its coal operations, which may not align with Rio’s ESG considerations.

Read more at Morningstar: Rio Tinto and Glencore in Merger Talks