BUSINESS

Rio Tinto Sees No Value in Glencore Mega-Merger

Published: Mar. 26, 2026 6:56 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Rio Tinto CEO Simon Trott speaks at the China Development Forum in Beijing on March 22.

Rio Tinto PLC CEO Simon Trott said the mining giant concluded that a mega-merger with Glencore wouldn’t create value and instead chose to focus on the Simandou iron ore project and key critical minerals.

Responding to a Caixin question during a media briefing Monday on the sidelines of the China Development Forum, Trott detailed the reasoning behind the aborted deal, which was officially abandoned in February.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Rio Tinto dropped a potential mega-merger with Glencore, citing lack of value, and is focusing on critical minerals projects like the $20 billion Simandou iron ore project.
The company is expanding in iron ore, copper, aluminum, and lithium, with significant investments in Guinea, Argentina, and the U.S., and plans to ramp up total iron ore output to 425–440 million tons.
China is central to Rio Tinto’s business, accounting for 57% of $57.6 billion in 2025 sales, with deep collaboration on projects and technology adoption.

AI generated, for reference only

Who’s Who

Rio Tinto PLC: Rio Tinto PLC, led by CEO Simon Trott, recently opted against a merger with Glencore, deeming it unable to create value. Instead, the company focuses on the Simandou iron ore project and critical minerals. Rio Tinto, with 57% of its 2025 sales from China, strengthens its ties, collaborating on Simandou and procuring from Chinese suppliers. The mining giant aims to increase iron ore production and expand its lithium business, including its recent acquisition of Arcadium Lithium.

Glencore: Glencore was involved in early-stage talks with Rio Tinto in January to explore a potential mega-merger. This combination would have created the world's largest mining company. However, Rio Tinto formally abandoned the plan in February, concluding that the tie-up would not generate value. While initially viewed as a key driver for the prospective deal, Rio Tinto remains cautious about mergers and acquisitions in the copper sector.

China Baowu Steel Group Corp. Ltd.: China Baowu Steel Group Corp. Ltd. is a Chinese partner in the Simandou iron ore project in Guinea. This project is a global cooperation model, also involving Rio Tinto, the Guinean government, and other Chinese firms like Aluminum Corp. of China (Chinalco) and Shandong Weiqiao Aluminum & Power Co. Ltd.

Aluminum Corp. of China (Chinalco): Aluminum Corp. of China (Chinalco) is a Chinese partner in the Simandou iron ore project, holding a 47% stake in the southern block's consortium alongside Rio Tinto. Chinalco is also collaborating with Rio Tinto to acquire a controlling stake in Companhia Brasileira de Alumínio, leveraging their long-standing relationship to secure low-carbon aluminum supply.

Shandong Weiqiao Aluminum & Power Co. Ltd.: Shandong Weiqiao Aluminum & Power Co. Ltd. is a Chinese partner in the Simandou iron ore project in Guinea. This unique consortium also includes Rio Tinto, the Guinean government, China Baowu Steel Group Corp. Ltd., Aluminum Corp. of China (Chinalco), and Singapore-registered Winning International Group. Chinese contractors are handling most of the project's infrastructure work.

Winning International Group: Winning International Group (a Singapore-registered company), along with China Baowu Steel Group Corp. Ltd., Aluminum Corp. of China (Chinalco), and Shandong Weiqiao Aluminum & Power Co. Ltd., are Chinese partners in the Simandou iron ore project in Guinea. This project is a cooperative effort with Rio Tinto and the Guinean government.

Companhia Brasileira de Alumínio: The article states that Rio Tinto, in partnership with Chinalco, acquired a controlling stake in Companhia Brasileira de Alumínio for 4.69 billion reais ($886 million) in January. This deal helps Rio Tinto secure low-carbon aluminum supply and complements its existing focus on aluminum, while also leveraging their long-standing relationship with Chinalco.

Arcadium Lithium: Arcadium Lithium was acquired by Rio Tinto in an all-cash buyout worth $6.7 billion in March 2025. This acquisition aligns with Rio Tinto's strategy to expand its footprint in critical transition metals, specifically lithium.

AI generated, for reference only

What Happened When

2022：: Rio Tinto acquired the Rincon lithium project in Argentina for $825 million.

March 2025：: Rio Tinto closed a $6.7 billion all-cash buyout of U.S. producer Arcadium Lithium.

2025：: China accounted for 57% of Rio Tinto’s $57.6 billion consolidated sales revenue. Rio Tinto’s procurement from China hit a record $4.3 billion.

August 2025：: Simon Trott became CEO of Rio Tinto and began focusing on four key commodities: iron ore, copper, aluminum, and lithium.

Late 2025：: Simandou iron ore project was commissioned; Rio Tinto leads the southern block.

January 2026：: Rio Tinto and Glencore announced early-stage talks for a merger to create the world’s largest mining company.

January 2026：: Rio Tinto said it would acquire a controlling stake in Companhia Brasileira de Alumínio with Chinalco for 4.69 billion reais ($886 million).