Source: Rio Tinto consults with three banks on possible Glencore acquisition.

Rio Tinto has hired JPMorgan, along with two other advisers, to help it evaluate its potential acquisition of Glencore. This deal could create the largest miner in the world, worth over $200 billion, according to a source familiar with the situation.

Rio Tinto also has Macquarie and Evercore, according to the source. These roles are highly sought after as bankers compete for a piece of the advisory fees, which could be worth more than $100,000,000.

The transaction is the latest attempt to consolidate the global mining industry as companies compete to secure metal reserves, including copper, which are needed for energy transition and artificial intelligent.

A second source with knowledge of this matter confirmed that Glencore had not yet hired a formal adviser. They spoke under condition of anonymity as 'the matter was private. Citi has ties with the company, as it?advised them on previous deals such as its failed acquisition of?Teck 2023.

Both mining giants have considered merging operations in the past. Rio Tinto rejected a Glencore merger offer in 2014 because it did not serve shareholders' interests. More recent talks on a merger in 2024 ended without agreement.

Bloomberg had previously published the names of the banks that were advising the latest attempt. (Reporting and editing by Anousha Saoui, Emelia Sithole Matarise and Andres González)

(source: Reuters)