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Miner and commodity trader Glencore said it is open to M&A transactions that create value for its shareholders, leveraging its position as a top three global copper producer.
For example, Martins Alexandre said if Glencore had Rio Tinto’s portfolio they may believe they could make more money out of trading the materials that Rio Tinto produces than Rio Tinto does alone, as this is not a trading entity. Glencore produces more than one million metric tons of copper a year, outpacing Rio’s output by up to 40%.
While most Western miners have sold assets of the carbon-intensive fossil fuel, Glencore has remained an industry outlier, amassing more of it over the past few years.Reuters reported last year that Glencore had also been studying a potential combination with Anglo American after BHP’s approach emerged. The company declined to comment.
Glencore is still hopeful that talks may restart with Rio Tinto, one of the sources with direct knowledge of the matter said. Glencore’s spokesperson declined to comment. They see synergies in overheads reduction, or use of same infrastructure facilities at adjacent mines, for example.
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