Rio Tinto confirms preliminary merger talks with Glencore

Rio Tinto (ASX:RIO) said it has held preliminary discussions with Glencore following the latter’s announcement, confirming talks on a potential combination involving some or all of their businesses, including the possibility of an all-share merger.

Rio Tinto said any transaction, if pursued, is expected to be structured as an acquisition of Glencore through a court-sanctioned scheme of arrangement, but stressed there is no certainty that an offer will be made or on what terms.

Under the UK Takeover Code, Rio Tinto has until Feb. 5 to announce a firm intention to make an offer or confirm it does not intend to proceed, subject to any extension granted by the Takeover Panel.