The reports implying metals and BHP mining giants, Rio Tinto, Glencore and Anglo American PLC are in doubt that the massive industry of several billion dollars is in the process of consolidating in 2025. However, reaching an agreement between the competitors For a long time could be more difficult than the simple combination of assets.
Recently, the Swiss multinational giant Glencore revealed that it had been in talks with the British-Australian Rio Tinto throughout the second half of last year, seeking to merge the two companies, which hold an exhibition of active and a different geographic positioning.
The potential agreement, which would be the biggest ever for the sector, would create an industry leader of more than $ 140 billion more than $ 140 billion and will open the way to significant synergies, especially in The highly contested copper sector, where the combination catapults the new according to Citi Bank Citi, society is to become one of the first three minors of the planet of the planet.
While recent reports have poured cold water on the prospects of the agreement, citing exposure to Glencore coal as the main deterrence – Rio Tinto has completely moved from coal in 2018 – a spokesperson for Glencore has strengthened the company’s pro-fusion position. “Mergers and acquisitions are something in which we are good, and we are always open to transactions that are accredent of value for the company,” they said.
This is not the first time that the two giants have discussed the combination of their companies. In 2014, Glencore tried to take a step for the assets of Rio Tinto, but met with firm and immediate rejection. The reception would have been very different this time, because the two companies engaged in months of conversations, but without reaching a happy ending so far.
The sense of urgency is above all justified by the recent attempt by the leader of the BHP industry to take Anglo American Plc control, based in London. While the talks were completed without agreement, the position of the British giant “increased the temperature on a mergers and acquisitions environment which already takes place”, according to the capital analyst of RBC capital, Ben Davis.
“The whole industry discusses how the majors have been consolidating for several years now. But people have not yet managed to do so, ”explains George Cheveley, a portfolio manager at Ninety One UK Ltd.