London, Jan 31, 2026, 07:51 GMT — Market closed
- Shares of Rio Tinto fell 1.6% on Friday, closing at 6,738p in London
- Miner struck a joint agreement with Aluminium Corporation of China (Chinalco) to take control of Companhia Brasileira de Alumínio (CBA)
- Traders eye metals volatility and Rio’s Feb. 19 earnings release as next week approaches
Shares of Rio Tinto (RIO.L) closed Friday down 1.62% at 6,738 pence, underperforming the stronger FTSE 100 as month-end turnover ramped up. Volume topped about 3.8 million shares, exceeding the 50-day average, after the stock had hit a 52-week high just the day before. (MarketWatch)
The miner’s latest deal put the spotlight back on its aluminium ambitions. Rio said it has agreed, through a joint venture, to buy Votorantim’s 68.596% controlling stake in CBA at 10.50 reais per share. That values the stake at about $903 million, with Rio’s portion coming to around $298 million. Jerome Pecresse, Rio’s aluminium and lithium CEO, described the acquisition as “aligned with our strategy” as the company aims to expand its low-carbon aluminium footprint. (Riotinto)
The timing is critical as metals prices have become volatile once more, with miners following the market moves closely. Copper hit a record high on Thursday but slipped on Friday, weighed down by profit-taking and a stronger dollar after Donald Trump announced Kevin Warsh as his pick to head the Federal Reserve. “The market thinks Kevin Warsh is rational,” noted Tom Price from Panmure Liberum. (Reuters)
In Sao Paulo, the companies agreed to purchase 446.6 million CBA shares from Votorantim for 4.69 billion reais, followed by a mandatory tender offer to acquire the remaining shares — a move that could lead to delisting. Baden Moore at CLSA called it “a very bullish signal,” citing the limited growth prospects for Chinese producers at home. The deal also comes just before a Feb. 5 deadline for Rio to comment on a potential tie-up with Glencore, the analyst noted. (Reuters)
For Rio, the Brazil deal may be minor on the balance sheet, but it brings capital allocation back into focus amid volatile commodity prices. It also signals a push toward “low-carbon” aluminium — produced using cleaner energy — that firms hope will command a premium as buyers demand stricter emissions standards.
Deal chatter has kept the UK takeover rulebook within reach. A recent Takeover Code filing revealed UBS Asset Management owns 10.4 million shares of Rio Tinto plc and 4.46 million in Rio Tinto Limited, with small sales reported in both on Jan. 29. (Investegate)
The upside story still hinges on prices — which have been volatile. If the dollar holds steady and funds continue trimming risk amid thin liquidity, metal prices could swing more sharply than fundamentals warrant, hitting miners hard even when company updates appear neutral.
As Monday approaches, traders are focused on whether industrial metals can steady after the recent dip and how the market views the CBA deal—simply a neat bolt-on or the opening move of a bigger play. New information on timing, approvals, and tender offer details will be closely scrutinized.
Rio is set to release its 2025 annual results on Feb. 19. The update will be delivered in a presentation by CEO Simon Trott and CFO Peter Cunningham. (Riotinto)
