Thursday night both Rio Tinto and Glencore issued a statement officially announcing they're in preliminary talks regarding a potential all-share acquisition of Glencore by Rio Tinto. For reference, this is the 3rd time they've tried to tie up their businesses, first in 2014 when Glasenberg proposed a merger, and more recently in 2024.
From what I understand, it DOES look like Rio Tinto would be fine with owning the Coal division of Glencore, at least for a handful of years before divesting it. Glencore might be willing to discuss management of the merged company (in 2024, negotiations failed because Nagle wanted to remain CEO), but I guess for Glencore to lose control, Rio would have to pay an interesting premium.
The synergies might be good: Rio is better than Glencore at running mines, while Glencore has the most successful marketing business out there that would allow metal flow to be distributed around the globe.
What are your thoughts about this merger?
Do you think this merger will actually go through this time? What do you think will happen with the Coal division? Would Rio keep Glencore's trading business or would there be consolidation with Rio's commercial teams? What about regulatory approval? Culture clash?