Rio Tinto engages three banks to advise on potential Glencore acquisition, source says

By Andres Gonzalez

LONDON, Jan 13 (Reuters) - Rio Tinto RIO.AX, RIO.L has engaged JPMorgan JPM.N and two other advisers on its potential acquisition of Glencore GLEN.L, a deal that could create the world's largest miner worth over $200 billion, a source with knowledge of the situation told Reuters.

The other banks Rio Tinto has engaged are Evercore EVR.N and Australian financial services group Macquarie, the person said. The roles are highly prized as bankers jostle for a share of potentially more than $100 million in advisory fees that such a deal could generate.

The potential transaction represents the latest attempt at consolidation in the global mining industry, as companies race to secure reserves of metals including copper, needed for the energy transition and artificial intelligence.

Glencore has not yet formally retained an adviser, a second person with knowledge of the matter said. The people spoke on condition of anonymity because the matter is private. Citi retains ties to the company as the U.S. bank has advised it on previous deals including its failed acquisition of Teck TECKb.TO in 2023, Reuters reported previously.

The two mining giants have explored combining operations before, with Rio Tinto rejecting a Glencore merger offer in 2014, saying it was not in shareholders' interest, while more recent merger talks in late 2024 also concluded without an agreement.

Bloomberg previously reported the names of banks advising on the latest attempt.