London, Feb 6, 2026, 08:01 GMT — Session underway
- Glencore shares slipped roughly 1.9% in early London trading, following a selloff on Thursday.
- Rio Tinto has dismissed any intention to make a bid for Glencore under UK takeover regulations, dampening short-term takeover rumors.
- Focus now turns to Glencore’s full-year results on Feb. 18, with investors eager for any new strategic cues.
Glencore (GLEN.L) shares dropped 1.9% to 466.1 pence in early London trading on Friday, deepening losses following Rio Tinto’s exit from merger discussions. The stock hovered close to the day’s low, within a 465.7–468.9 pence range, during the first minutes of the session. (Google)
The move keeps the heat on the miner-trader after a rare wave of takeover chatter quickly died down with a firm “no” from Rio. The proposed merger would have formed a mining giant valued at over $200 billion. Yet, familiar hurdles around valuation and control surfaced, prompting investors to pull back on a deal premium that barely had time to take hold. “It is possible that the two companies re-engage at some point in the future, but that is not our base case,” Jefferies analyst Christopher LaFemina said. (Reuters)
Rio’s announcement came as a formal “no intention to bid” statement under Rule 2.8 of the UK Takeover Code — essentially a commitment that limits when a bidder can re-enter unless specific conditions are fulfilled. This is significant because it tightens the window for any near-term offers and shifts focus back to earnings and cash flow rather than deal calculations. (Investegate)
Glencore closed Thursday roughly 7% lower at 475.25 pence, based on the company’s delayed LSE quote, with early trading Friday pushing the decline further. (Glencore)
Glencore’s board blamed governance issues and valuation concerns for the collapse. They flagged that the deal would have kept Rio’s chairman also acting as CEO, and that the terms “did not adequately valuing our copper business,” along with its growth prospects and synergies. (Investegate)
Rio investors welcomed the move to back away, pointing out that big mining mergers often drain management’s focus and breed prolonged uncertainty. “It’s a positive sign Rio is staying disciplined and not overpaying,” said Andy Forster, senior investment officer at Argo Investments. Hugh Dive, CIO at Atlas Funds Management, added, “Miners have a poor long-term record with mega mergers.” (Reuters)
After the Rio talks wrapped up, some brokers took the dip as a chance to update their valuations. Barclays analysts highlighted that Glencore shares were trading at a discount, setting a price target of 525 pence, according to TradingView. (TradingView)
Still, the trade runs both ways. The stock reacts sharply to shifts in metals and energy markets, and the end of talks might weigh on sentiment if investors see the takeover angle as the clearest path to a re-rating. But a strong bounce in copper sentiment or any hint of new corporate moves could rapidly draw buyers back.
Glencore’s full-year results drop on Feb. 18 at 0700 UK time, followed by a webcast at 0830. Investors will focus on guidance around copper growth spending, shareholder returns, and whether the company shifts its stance toward the “standalone” strategy now that the deal window has closed. (Glencore)
