Shares in Glencore increased by almost 10% after talks resumed over a potential merger deal with FTSE 100 listed Anglo-Australian mining company, Rio Tinto.

The merger is expected to create a mining firm valued at just over £190bn.

Initial talks took place in 2024 but collapsed following issues around valuation, the running of the merged company and Glencore's coal mining future.

In separate statements, the two mining firms said that following preliminary discussions, the parties’ current expectation is that any merger transaction would be effected through the acquisition of Glencore by way of a court-sanctioned scheme of arrangement.

There is no certainty that the terms of any transaction or offer will be agreed, nor as to the terms or structure of any such transaction or offer, if agreed.

Rio Tinto now has until 5 February to either announce a firm intention to make an offer for Glencore or state that it does not intend to make an offer.

Investment director at AJ Bell, Russ Mould, stated: "The mining sector continues to be a plus point for the FTSE 100 with Glencore and Rio Tinto confirming talks about a merger which would create the world’s largest miner.

"The divergent share price reaction would suggest the market thinks Glencore would be the bigger beneficiary of a deal. A key driver for the merger is the scramble for copper given its role in electrification and constrained supply.

"Attention is likely to turn to US jobs numbers and a US Supreme Court decision on the Trump administration’s tariff policies. If the court strikes down the tariffs, there may be positives for investors, but it could also hit Government revenue, potentially prompting an increase in Treasury yields which would have ripple effects in the wider financial markets."

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