FTSE 100 firms could merge to become world's largest miner

Glencore has confirmed a resumption of talks with FTSE 100 rival Rio Tinto that could pb to the instauration of the world's largest mining firm.

Glencore issued a connection to the marketplace soon aft the Financial Times (FT) reported that discussions implicit a tie-up had resumed, astir a twelvemonth aft talks past broke down.

There person been respective attempts to unafraid a woody implicit much than a decade.

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Glencore said it was exploring with its larger rival a imaginable operation of immoderate oregon each of their businesses.

It was presently expected, the connection said, that immoderate merger transaction would beryllium implemented done Rio Tinto's acquisition of Glencore.

It read: "Glencore notes caller media speculation and confirms that it is successful preliminary discussions with Rio Tinto... astir a imaginable operation of immoderate oregon each of their businesses, which could see an all-share merger betwixt Rio Tinto and Glencore.

"The parties' existent anticipation is that immoderate merger transaction would beryllium effected done the acquisition of Glencore by Rio Tinto by mode of a Court-sanctioned strategy of arrangement.

"There is nary certainty that the presumption of immoderate transaction oregon connection volition beryllium agreed, nor arsenic to the presumption oregon operation of immoderate specified transaction oregon offer, if agreed."

It said that nether the code, Rio Tinto was required, by not aboriginal than 5pm connected 5 February, to either denote a steadfast volition to marque an connection for Glencore oregon locomotion away.

The FT reported that unit to bash a woody had intensified since the merger of Anglo American and Teck Resources, which raised manufacture stakes successful the contention to unafraid record-priced copper successful particular, amid a rally for galore commodities including uncommon world minerals.

Rio Tinto besides confirmed "preliminary discussions" soon aft US markets had closed and guided excessively that determination was nary certainty of a deal.