'No discussion taking place with Glencore': Rio Tinto
Rio Tinto (LON:RIO) issued a statement squelching speculation about a possible combination of Rio Tinto and Glencore stating that the move is not in the interest of its shareholders.
"The Rio Tinto board confirms that no discussions are taking place with Glencore," said Rio Tinto in a statement.
The news release confirmed that Glencore contacted Rio Tinto about a possible merger in July 2014.
If the two combined, the new company would be the world's largest miner.
Bloomberg wrote today that Glencore had been laying the groundwork for a potential deal and had reached out to Aluminum Corp. of China Ltd., Rio Tinto's largest shareholder, to see if there was interest in a deal.
Statement from Rio Tinto is below:
Statement regarding press speculation
The board of Rio Tinto notes the recent press speculation regarding a possible combination of Rio Tinto and Glencore.
The Rio Tinto board confirms that 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."