Rio Tinto has announced it is no longer considering a possible merger with Glencore, after the two firms held discussions over a £190bn deal to create the world’s largest mining company.

The pair said they both walked away from the deal because they determined it was not possible to reach an agreement that would deliver value to their respective shareholders.

Initial talks took place in 2024 but collapsed following issues around valuation, the running of the merged company and Glencore's coal mining future.

Glencore said its standalone investment is strong, and it has a well-diversified business across a range of commodities, supported by one of the “best marketing franchises in the industry.

It stated that it is “uniquely positioned” to support the energy needs of today whilst providing many of the transition enabling commodities the world needs as demand changes.

Following the announcement, shares in Glencore jumped by almost 2%. In the last year, it has increased by over 36%.

Investment director at AJ Bell, Russ Mould said that many wondered whether the merger would be third time lucky, but it is not to be.

He concluded: “Statements from both companies hinted at the gulf between the two despite months of back-and-forth discussions. It had been thought that Rio Tinto’s new CEO might bridge the cultural differences between the two companies and succeed in getting the mega merger over the line. But with so much at stake and shareholders to appease, it seems ultimately the magic number couldn’t be found, at least not right now.

“There’s been considerable momentum in the mining sector as demand for metals like copper ramps up amid an ongoing shift to cleaner energy technology. It’s therefore understandable that the spectre of consolidation keeps popping up, but so far deals have been hard to strike.”

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