Rio Tinto And Glencore Confirm $260 Billion Merger Negotiation

(MENAFN- Yolo Wire) Mining giants Rio Tinto (NYSE: $RIO) and Glencore (OTC: $GLCNF) have confirmed they are engaged in negotiations aimed at merging the two companies in a blockbuster $260 billion U.S. deal.

Swiss mining company Glencore and British minerals miner Rio Tinto say the talks are in the early stages and stress that no agreement has been reached.

The negotiations reportedly concern a potential combination of some or all of their businesses, including a possible all-stock merger of the two global companies.

Glencore mines metals, minerals, and energy such as coal, as well as agriculture commodities. Rio Tinto mines and processes iron ore, aluminum, copper, and minerals.

Rio Tinto is the bigger of the two companies with a market capitalization of $140 billion U.S. Glencore's market value is $65 billion U.S.

The negotiations apparently focus on Rio Tinto buying Glencore.

However, the companies said they would announce a deal when and if an agreement is reached between their respective boards of directors.

Rio Tinto has until Feb. 5 of this year to "either announce a firm intention to make an offer for Glencore" or announce that it doesn't intend to make an offer, the two companies said.

Glencore stock rose 10% on reports of the negotiations while RIO shares fell 3%.

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