Rio Tinto-Glencore merger could face Chinese regulatory hurdles

The projected merger betwixt Rio Tinto and Glencore could reportedly look important regulatory challenges, peculiarly successful China.

According to a Reuters report, the companies whitethorn request to merchantability assets to unafraid approval.

Earlier this month, Rio Tinto and Glencore disclosed that they had initiated preliminary discussions regarding the imaginable merger. Both mining majors provided constricted details connected the imaginable operation of the woody oregon which assets mightiness beryllium involved.

They noted that the existent connection involves an all-share acquisition, with Rio Tinto perchance acquiring "some oregon all" of Glencore.

Past large-scale mergers successful the mining assemblage encountered akin regulatory scrutiny from China, specified arsenic Glencore's acquisition of Xstrata successful 2013, Reuters reported. During the deal, Glencore sold its involvement successful the Las Bambas copper excavation to Chinese buyers for astir $6bn (41.78bn yuan).

China's regulators are expected to analyse the imaginable dominance of a combined Rio Tinto-Glencore entity successful the copper and robust ore markets.

Rio Tinto has already been considering an asset-for-equity swap to trim the 11% involvement held by its largest shareholder, Chinalco, the state-run Aluminium Corporation of China.

Assets of involvement see Rio Tinto's Simandou robust ore excavation successful Guinea and the Oyu Tolgoi copper task successful Mongolia.

Demand for copper assets has accrued owed to their value for the greenish vigor modulation and AI technologies.

Both Rio Tinto and Glencore person been shifting absorption towards copper, aligning with competitors similar Australia's BHP.

The rising value of copper has besides been noted by different manufacture players, with Anglo American and Teck Resources readying a $53bn merger, which volition besides necessitate Chinese regulatory scrutiny.

"Rio Tinto-Glencore merger could look Chinese regulatory hurdles" was primitively created and published by Mining Technology, a GlobalData owned brand.

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