Glencore Shares Dip Amid Looming Rio Tinto Merger Deadline

Glencore shares have experienced a decline amidst looming merger talks with Rio Tinto. On February 5, 2026, the stock dipped by 1.2% during early trading in London, closing at 505.00 pence.

Market Reaction to Glencore Shares

Trading started at 498.45 pence and fluctuated between 495.20 pence and 505.90 pence after a previous close of 511.20 pence. The drop has been attributed to uncertainties surrounding merger discussions.

Merger Talks Under Pressure

Reports indicate that Rio Tinto is likely to request an extension for its negotiations with Glencore ahead of a crucial takeover deadline. This move comes as some investors, particularly those in Australia, are hesitant to pay a premium for Glencore’s assets, questioning the value of its trading division.

• Rio Tinto aims to retain leadership roles during any merger.
• Glencore is seeking a substantial premium in valuations.
• Valuation and governance disagreements remain major hurdles.

Market analysts have voiced skepticism regarding the potential for a favorable deal. Hugh Dive of Atlas Funds referred to the extension as “a face-saving device,” while Andy Forster of Argo Investments emphasized the need for a mutually beneficial agreement.

Upcoming UK Takeover Deadline

The UK takeover rules mandate that a bidder must either present a firm offer or withdraw unless an extension is granted by regulators. A withdrawal by Rio Tinto could diminish Glencore’s share value significantly.

Challenging Developments for Glencore

In a separate but related development, Glencore announced discussions to sell a 40% stake in its operations at the Mutanda Mining and Kamoto Copper Company in the Democratic Republic of Congo. This stake is valued at approximately $9 billion, including debt, as part of a partnership with the Orion Critical Mineral Consortium.

• The agreement allows Orion to appoint non-executive directors.
• Glencore will continue to manage the assets under the new partnership.
• Production estimates indicate 247.8 thousand tonnes of copper and 33.5 thousand tonnes of cobalt by 2025.

Furthermore, Glencore faces regulatory hurdles in Canada, leading to a pause in nearly $1 billion in planned investments at its Horne Smelter in Quebec. COO Marc Bédard stated that existing uncertainties prompted this decision.

Investor Concerns and Market Sentiment

As negotiations and regulatory challenges unfold, investor sentiment remains fragile. The imminent UK takeover deadline looms, raising questions about whether Glencore and Rio Tinto will extend discussions or abandon the merger altogether.