Coal news and updates

Rio Tinto dismisses rumours of coal merger with Glencore

Rio Tinto has dismissed rumours that it is considering a merger with major miner Glencore.

Speculation has been rife in the market over a tie-up between the two companies.

Much of the focus has been on the companies coal assets in the Hunter Valley.
According to the Sydney Morning Herald, Glencore has been in talks with Rio Tinto's major shareholder Chinalco over the potential deal.

Glencore CEO Ivan Glasenberg has previously voiced his views at private investor meetings, pointing to possible the tie-up of the companies coal assets as a smart move for the businesses.

The potential move was also viewed favourably in the market.

However Rio Tinto has now quashed these market rumours.

"The Rio Tinto board confirms that no discussions are taking place with Glencore,"  it said today in a company statement.

It stated that it was approached in July regarding a merger of the two companies, however "after consultation with its financial and legal advisers, concluded unanimously that combination was not in the best interests of Rio Tinto's shareholders".

Rio went on to state "the board's rejection was communicated to Glencore in early August and there has been no further contact between the two companies on this matter".

The company will instead continue focusing on the growth of its assets, it added.
 

Source: Australian Mining