Investors skeptical to Rio Tinto merger talks, shares fall
Rio Tinto confirmed preliminary merger talks with Glencore alongside robust Q3 production beats across iron ore, bauxite and copper, likely to drive positive market sentiment in the long run.
Rio Tinto Limited (ASX: RIO)
on 8 January 2026 has confirmed discussions with Glencore plc with regards to a possible combination of some or all of their businesses. This can be carried out via an all share merger as Glencore is acquired through a court sanctioned scheme of arrangement.
Rio Tinto has delivered strong portfolio performance in Q3 which has included record bauxite output of 16.4 Mt (up 9% YoY), Pilbara iron ore shipments of 84.3 Mt (+6% QoQ) and copper production of 204 kt (+10% YoY). This is on track for high end full year guidance and was driven by Oyu Tolgoi ramp up which exceeded 50% copper growth target.
The balance sheet remains strong with exploration spend down $537 million year to date compared to $692 million the year. Key milestones advanced included getting complete regulatory approvals for the West Angelas Sustaining Project in October 2025 to extend mine life, first ore loading at the Simandou iron ore project that same month as commissioning ramps up, environmental and social impact assessment clearance for the Rincon lithium expansion in August to unlock construction, and completing critical concentrator upgrades at Oyu Tolgoi ahead of schedule to support higher recovery rates and production growth.
(Source: Company Announcements)
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