The Rio Tinto Group logo atop Central Park tower, which houses the company’s offices, in Perth, Australia, on Friday, Jan. 17, 2025.
Bloomberg | Bloomberg | Getty Images
The mining sector appears poised for a frantic year of dealmaking, following market speculation over a potential tie-up between industry giants Rio Tinto and Glencore.
It comes after Bloomberg News reported Thursday that British-Australian multinational Rio Tinto and Switzerland-based Glencore were in early-stage merger talks, although it was not clear whether the discussions were still live.
Separately, Reuters reported Friday that Glencore approached Rio Tinto late last year about the possibility of combining their businesses, citing a source familiar with the matter. The talks, which were said to be brief, were thought to be no longer active, the news agency reported.
Rio Tinto and Glencore both declined to comment when contacted by CNBC.
A prospective merger between Rio Tinto, the world’s second-largest miner, and Glencore, one of world’s largest coal companies, would rank as the mining industry’s largest-ever deal.
Combined, the two firms would have a market value of approximately $150 billion, leapfrogging longstanding industry leader BHP, which is worth about $127 billion.
Analysts were broadly skeptical about the merits of a Rio Tinto-Glencore merger, pointing to limited synergies, Rio Tinto’s complex dual structure and strategic divergences over coal and corporate culture as factors that pose a challenge for concluding a deal.
“I think everyone’s a bit surprised,” Maxime Kogge, equity analyst at Oddo BHF, told CNBC via telephone.
“Honestly, they have limited overlapping assets. It’s only copper where there is really some synergies and opportunity to add assets to make a bigger group,” Kogge said.
Global mining giants have been mulling the benefits of mega-mergers to shore up their position in the energy transition, particularly with demand for metals such as copper expected to skyrocket over the coming years.
A highly conductive metal, copper is projected to face shortages due to its use in powering electric vehicles, wind turbines, solar panels and energy storage systems, among other applications.
Oddo BHF’s Kogge said it is currently “really tricky” for large mining firms to bring new projects online, citing Rio Tinto’s long-delayed and controversial Resolution copper mine in the U.S. as one example.
“It’s a very promising copper project, it could be one of the largest in the world, but it is fraught with issues and somehow acquiring another company is a way to really accelerate the expansion into copper,” Kogge said.
“For me, a deal is not so attractive,” he added. “It goes against what all these groups have previously tried to do.”
Last year, BHP made a $49 billion bid for smaller rival Anglo American, a proposal which ultimately failed due to issues with the deal’s structure.
Some analysts, including those at JPMorgan, expect another unsolicited offer for Anglo American to materialize in 2025.
M&A parlor games
Analysts led by Dominic O’Kane at JPMorgan said the bank’s “high conviction view” that 2025 would be defined by mergers and acquisitions (M&A), particularly among U.K.-listed miners and global copper companies, was coming to fruition just two weeks into the year.
The Wall Street bank said its own analysis of the mining sector found that the current economic and risk management environment meant M&A was likely preferred to the building of organic projects.
Analysts at JPMorgan predicted the latest speculation would soon thrust Anglo American back into the spotlight, “specifically the merits and probability of another combination proposal from BHP.”
Prior to pursuing Anglo American, BHP completed an acquisition of OZ Minerals in 2023, bolstering its copper and nickel portfolio.
The company logo adorns the side of the BHP gobal headquarters in Melbourne on February 21, 2023. – The Australian multinational, a leading producer of metallurgical coal, iron ore, nickel, copper and potash, said net profit slumped 32 percent year-on-year to 6.46 billion US dollars in the six months to December 31. (Photo by William WEST / AFP) (Photo by WILLIAM WEST/AFP via Getty Images)
William West | Afp | Getty Images
Analysts led by Ben Davis at RBC Capital Markets said it remains unclear whether talks between Rio Tinto and Glencore could result in a simple merger or require the breakup of certain parts of each company instead.
Regardless, they said the M&A parlor games that arose following merger talks between BHP and Anglo American will undoubtedly “start up again in earnest.”
“Despite Glencore once approaching Rio Tinto’s key shareholder Chinalco in July 2014 for a potential merger, it still comes as a surprise,” analysts at RBC Capital Markets said in a research note published Thursday.
BHP’s move to acquire Anglo American may have catalyzed talks between Rio Tinto and Glencore, the analysts said, with the former potentially looking to gain more copper exposure and the latter seeking an exit strategy for its large shareholders.
“We would not expect a straight merger to happen as we believe Rio shareholders would see it as favouring Glencore, but [it’s] possible there is a deal structure out there that could keep both sets of shareholders and management happy,” they added.
Copper, coal and culture
Analysts led by Wen Li at CreditSights said speculation over a Rio Tinto-Glencore merger raises questions about strategic alignment and corporate culture.
“Strategically, Rio Tinto might be interested in Glencore’s copper assets, aligning with its focus on sustainable, future-facing metals. Additionally, Glencore’s marketing business could offer synergies and expand Rio Tinto’s reach,” analysts at CreditSights said in a research note published Friday.
“However, Rio Tinto’s lack of interest in coal assets, due to recent divestments, suggests any merger would need careful structuring to avoid unwanted asset overlaps,” they added.
A mining truck carries a full load of coal at Glencore Plc operated Tweefontein coal mine on October 16, 2024 in Tweefontein, Mpumalanga Province, South Africa.
From a cultural perspective, analysts at CreditSights said Rio Tinto was known for its conservative approach and focus on stability, whereas Glencore had garnered a reputation for “constantly pushing the envelope in its operations.”
“This cultural divide might pose challenges in integration and decision-making if a merger were to proceed,” analysts at CreditSights said.
“If this materializes, it could have broader implications for mega deals in the metals [and] mining space, potentially putting BHP/Anglo American back in play,” they added.
French hydrogen firm Hyvia has been given a stay of execution. The Commercial Court of Versaille has given Hyvia a few extra weeks to get through its insolvency proceedings and find a buyer – but, frankly, it ain’t lookin’ good.
Hyvia began life as a joint venture between French carmaker Renault and American company Plug Power in 2021, but as anyone with more than a social media headline-deep knowledge of hydrogen’s shortcomings as a transportation already know: it’s impossible for hydrogen to compete with BEVs.
To its credit, Renault seems to have learned those rather expensive lessons about hydrogen well – and has learned so much about hydrogen that it’s committed to a full range of battery electric delivery vans. The French carmaker’s new vans range in size from something like an MPV/minivan on up to a box van and something like one of the Amazon delivery vans built by Rivian called the Estafette E-Tech (below, center).
Renault commercial electric vans
Electric commercial vans, via Renault.
But this article isn’t about Renault’s EVs, it’s about the hydrogen-powered Hyvia brand – and Hyvia doesn’t seem to be long for this world. That hard truth becomes even more obvious when you read the company’s own statement on the matter, which is almost wholly devoid of self-awareness and full of external blame:
For three years, HYVIA, one of the first companies to invest and innovate in hydrogen mobility, has developed an offer, in a market which unfortunately still remains absent.
The too slow evolution of hydrogen mobility ecosystems in Europe and the very significant development costs required for H2 innovation led to this decision.
The new Liebherr Liduro Power Port 100 is the company’s newest, smallest battery energy storage system to charge electric construction equipment or power up a mobile office – and it’s coming to bauma 2025.
Access to power on construction sites can be limited or non-existent – even if you’re working for the power company! Liebherr understands this better than most, and they’re developing a series of portable energy storage solutions like the Liduro Power Port (LPO) to make sure electrified job sites can keep the lights on.
Liebherr put the LPO 100 to work by French construction firm CJ Bois, in France, to power a 65 K.1 bottom-slewing crane on a construction site. With access to a standard 2 kW household outlet, the LPO 100 was able to deliver up to 26 kW power up to on-site equipment the next day.
“Available for sale and very soon for rental, Liduro completes our commercial offering,” comments Cyrille Prudhomme, business development manager at Liebherr Distribution and Services France. “(The LPO) enables us to expand our service offering to our customers by providing a concrete response to the electrification of the construction sites and many other applications.”
For their part, CJ Bois seems happy with the Liduro. “We were very pleasantly surprised by how quiet it was throughout the worksite,” says the site manager at CJ Bois. “Compared to an internal combustion engine generator, Liduro significantly improves our working conditions, and we feel less tired at the end of the day. It also facilitates communication on site, which contributes to staff safety.”
Liebherr will bring the LPO 100 to bauma for the first time this year, with customer deliveries set to begin soon after. The company says it can be used with maximum efficiency to supply electricity to fast-erecting tower cranes and small- to medium-sized machines like Liebherr’s own L 507 E compact electric wheel loader.
Electrek’s Take
CJ Bois deploys the Liebherr LPO 100; via Liebherr.
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