LONDON (dpa-AFX) – The mining companies Glencore and Rio Tinto have revived their merger talks, which ended around a year ago, in view of the global shortage of raw materials. Glencore spoke on Thursday evening of preliminary talks with its rival, confirming a report in the Financial Times (“FT”). A deal could create the world’s largest raw materials company with an enterprise value including debt of more than $260 billion. Glencore shares rose significantly by more than 7 percent after hours on the Tradegate trading platform, while Rio Tinto gained one percent.
Many raw material prices worldwide, especially those of metals such as gold, silver and the industrial metal copper, are at record levels. The hunt for copper in particular is currently turning the industry upside down. This week, the price of copper rose to a record high of over $13,300 a ton. According to analysts, there is a risk of a noticeable shortage of the metal in the coming years up to 2040.
According to Glencore, the talks are about a possible merger of some or all parts of the business. A merger via a pure share exchange is also being discussed. There is no certainty about an agreement or details of a merger, it said. The group would like to comment further in time./men/nas
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