Rio denies merger with Glencore

Rio Tinto has issued a statement denying that discussions are taking place with Glencore over a possible company merger.

There has been speculation in the press in regard to a possible combination of the two mining giants.

The statement said that the Rio Tinto board confirmed no discussions are taking place with Glencore.

In July 2014, Glencore contacted Rio Tinto regarding a potential merger of Rio Tinto and Glencore.

The Rio Tinto board, after consultation with its financial and legal advisers, concluded unanimously that a combination was not in the best interests of Rio Tinto’s shareholders.

The board’s rejection was communicated to Glencore in early August and there has been no further contact between the companies on this matter.

Rio Tinto remains focused on the successful execution of its strategy, which the board of Rio Tinto is confident will continue to deliver significant and sustainable value for shareholders.

Rio Tinto chairman, Jan du Plessis, said “Under the leadership of Sam Walsh and Chris Lynch, Rio Tinto has made significant progress in refocusing and strengthening its business.

“The board believes that the continued successful execution of Rio Tinto’s strategy will allow Rio Tinto to increase free cash flow significantly in the near term and materially increase returns to shareholders. Rio Tinto’s shareholders stand to benefit from the very considerable value that this will generate.” 

Adapted from press release by Sam Dodson

Read the article online at: https://www.worldcoal.com/coal/07102014/rio-denies-merger-with-glencore-1396/