London, Feb 6, 2026, 08:01 GMT — Regular session
- Rio Tinto shares slide at the open as the miner shuts the door on Glencore talks
- UK takeover-code “no intention” wording tightens the path back to the table
- Investors pivot to Rio’s standalone plan ahead of its February results
Rio Tinto plc shares (RIO.L) fell 1.6% to 6,720 pence in early London trading on Friday, after closing at 6,826 pence. The stock traded between 6,670.84 and 6,727.00 pence in the first minutes. (Google)
The move follows Rio’s decision to end discussions with Glencore (GLEN.L), cutting off — at least for now — a deal that had become the market’s main “what if” for two of the sector’s biggest names.
It matters because those talks had fed a clear trade: pay up for possible scale in copper, and worry later about the mess of putting two giants together. With that option gone, investors are back to the usual drivers — commodities, project execution and cash returns — with less room for takeover math.
Rio said on Thursday it was no longer considering a merger or other business combination with Glencore after deciding it could not reach terms that would deliver value for its shareholders. In the same announcement, it said it was making a Rule 2.8 statement under the UK Takeover Code — a provision that restricts a bidder after it says it will not make an offer, though the code allows limited exceptions. (Riotinto)
Rio’s shares fell about 2.6% on Thursday as the companies walked away from the talks, while Glencore dropped 7%, a Reuters tally showed. Jefferies analyst Christopher LaFemina said, “It is possible that the two companies re-engage at some point in the future, but that is not our base case.” (Reuters)
In Australia, the mood looked different. Rio’s Sydney-listed shares rose as much as 2.6% to a record high in early trade before settling up about 1%, and some investors said management showed discipline by stepping away from a costly tie-up. “This is positive that Rio appears to be disciplined in not overpaying,” said Andy Forster, Argo Investments’ senior investment officer. (Reuters)
Glencore, in its own statement, said Rio’s preferred outline would have kept Rio’s chairman and chief executive in place and used a pro forma ownership split that “significantly undervalued” Glencore’s contribution — especially its copper business and growth pipeline. Pro forma means “on a combined basis,” before the hard parts of integration and any promised synergies are proven. (Glencore)
Disclosure paperwork kept rolling in on Friday. Schroders filed an opening position disclosure under Rule 8.3 of the Takeover Code, showing it held interests of about 1.6% in Rio Tinto plc shares alongside derivatives positions, and listed Glencore as another party to the offer period. (TradingView)
For traders in London, the question now is whether Rio’s stock can find a floor without the optionality of a mega-deal. The selling looks like a mix of “deal premium” unwinding and a reality check on how long it takes to build copper volume the slow way.
But the story can still twist. Commodity prices can turn quickly, and any renewed push for big acquisitions — even outside Glencore — would reopen the debate about governance, valuation and execution risk, a set of problems miners have not handled well in past mega-mergers.
The next hard marker is Rio’s 2025 annual results on Feb. 19, when chief executive Simon Trott and finance chief Peter Cunningham are scheduled to present. Investors will listen for guidance, dividend signals and how loudly management talks about growth projects versus fresh M&A. (Riotinto)
