Glencore close to appointing Citi as adviser for Rio Tinto merger talks, sources say
Swiss miner Glencore is close to engaging Citi as its lead investment bank on its potential acquisition by Rio Tinto that could create the world's largest miner worth over $200-billion, two people familiar with the matter told Reuters.
Citigroup Global Markets filed disclosures with the UK Takeover Panel in January, identifying itself as connected with Glencore in relation to a possible deal with Rio Tinto, according to filings made at the London Stock Exchange.
The bank and Glencore declined to comment.
Citi has a long-standing relationship with Glencore, having advised the miner and trader on several major transactions, including its 2011 initial public offering and, more recently, the buyout of Teck Resources' coal business.
Markets have widely anticipated that Rio Tinto and Glencore, which on January 8 said they were in early merger talks, might seek to extend the current deadline for a possible bid, given the scale and complexity of a potential deal.
Under UK takeover rules, a potential bidder has 28 days from being identified to either announce a firm intention to make an offer or walk away. The current deadline expires on Feb 5, though the parties could request an extension.
Other investment banks are also vying for advisory roles on the deal, the sources said, without naming them.
Rio Tinto appointed JP Morgan, Evercore and Macquarie to advise on the deal, according to people aware of the development, Reuters reported earlier this month.
The advisory roles on a deal of this magnitude are highly coveted as bankers jostle for a share of potentially more than $100-million in advisory fees.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Projects
Latest News
Showroom
AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa
VISIT SHOWROOM
ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
