Rio Tinto (LON:RIO) issued a statement about a possible combination of Rio Tinto and Glencore stating that the move is not in the interest of its shareholders.
鈥淭he Rio Tinto board confirms that no discussions are taking place with Glencore,鈥� 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鈥檚 largest miner.
聽that Glencore had been laying the groundwork for a potential deal and had reached out to Aluminum Corp. of China Ltd., Rio Tinto鈥檚 largest shareholder, to see if there was interest in a deal.
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鈥檚 shareholders.
The board鈥檚 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 鈥淯nder the leadership of Sam Walsh and Chris Lynch, Rio Tinto has made significant progress in refocusing and strengthening its business.
鈥淭he board believes that the continued successful execution of Rio Tinto鈥檚 strategy will allow Rio Tinto to increase free cash flow significantly in the near term and materially increase returns to shareholders. Rio Tinto鈥檚 shareholders stand to benefit from the very considerable value that this will generate.鈥�