Glencore Share Price JSE Nears Record High on Renewed Merger Talk With Rio Tinto
Glencore surged to the forefront of the mining sector on Friday, as renewed takeover speculation involving Rio Tinto reignited bullish...
Quick overview
- Glencore's shares surged over 10% following renewed takeover speculation involving Rio Tinto, reflecting bullish momentum in the stock.
- Rio Tinto's shares fell 2.3% as expectations grew that Glencore would command a premium in any potential transaction.
- Glencore's stock has nearly doubled since April last year, closing above R100 and approaching its all-time high.
- If a merger occurs, it would create the world's largest mining company with a combined valuation exceeding $200 billion.
Glencore surged to the forefront of the mining sector on Friday, as renewed takeover speculation involving Rio Tinto reignited bullish momentum in the stock.
Takeover Speculation Ignites Strong Rally
Glencore shares surged more than 10% on Friday after reports confirmed that discussions around a potential takeover by Rio Tinto have resurfaced. The renewed interest has injected fresh optimism into Glencore’s long-running recovery trend and sharpened investor focus on the company’s strategic value.
By contrast, Rio Tinto’s shares softened on the news, with its London-listed stock falling 2.3%, following a 6.3% decline in Australian trading earlier in the session. The divergence reflects expectations that Glencore would command a premium in any transaction.
A Powerful Uptrend Gains Momentum
Glencore’s share price has been trending higher since April last year, rebounding from around R53 and nearly doubling in less than twelve months. The stock closed the week above R100, placing it firmly back within reach of its all-time high near R122, last seen in 2022.
GLNJ Chart Weekly – The Resistance Has Been Broken
This sustained technical strength has attracted renewed institutional interest, with takeover speculation acting as a catalyst rather than the sole driver of gains.
Merger Talks Reopen a Strategic Path
Rio Tinto and Glencore previously explored a merger in late 2024, but negotiations stalled over valuation differences and the future of Glencore’s coal assets. Recent developments suggest the two sides are once again in preliminary discussions, potentially involving a partial or full combination of businesses.
Current expectations point toward a Court-sanctioned scheme of arrangement, under which Rio Tinto would acquire Glencore, likely through an all-share transaction.
A Potential Industry Giant
If completed, the deal would create the world’s largest mining company, combining Rio Tinto’s roughly A$209 billion market value with Glencore’s £48.5 billion, resulting in a combined valuation exceeding $200 billion—a transformative outcome for the global mining landscape.
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