Glencore and Rio Tinto in talks that could create world's largest mining firm

Glencore is in talks with rival Rio Tinto that could lead to merger and the creation of the world's largest mining firm.

Glencore issued a statement to the market soon after the Financial Times (FT) reported that discussions over a tie-up had resumed, almost a year after a previous round of talks broke down. There have been several attempts to secure a deal over more than a decade.

Money latest: Top chef slams pub support package Glencore said it was working with its larger rival to explore a possible combination of some or all of their businesses. "Glencore notes recent media speculation and confirms that it is in preliminary discussions with Rio Tinto...

about a possible combination of some or all of their businesses, which could include an all-share merger between Rio Tinto and Glencore," a statement said. "The parties' current expectation is that any merger transaction would be effected through the acquisition of Glencore by Rio Tinto by way of a Court-sanctioned scheme of arrangement.

"There is no certainty that the terms of any transaction or offer will be agreed, nor as to the terms or structure of any such transaction or offer, if agreed." It said that under the code, Rio Tinto was required, by not later than 5pm on 5 February, to either announce a firm intention to make an offer for Glencore or walk away. The FT reported that pressure to do a deal had intensified since the merger of Anglo American and Teck Resources, which raised industry stakes in the race to secure record-priced copper, amid rising prices for many commodities including rare earth minerals.

Rio Tinto also confirmed "preliminary discussions" shortly after US markets had closed and also said that there was no certainty of a deal..