Rio Tinto studies mining megadeals after collapse of BHP-Anglo swoop
The FTSE 100 mining giant Rio Tinto is wargaming its biggest takeover swoop for years after the collapse of rival BHP’s £39bn (£24.7bn) bid for Anglo American.
Sky News has learnt that Rio, which is listed in London and Sydney, is studying a refreshed list of potentially industry-reshaping takeover targets including Teck Resources, the Canadian group.
City sources said Rio had drawn up detailed proposals for a potential bid for Teck which included approaching banks about financing a deal.
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Teck Resources would be valued at well over $30bn (£23.2bn) in any credible approach, according to bankers, and potentially in the region of $32bn.
It was unclear on Friday, however, whether Rio would ultimately choose to make a formal approach to Teck.
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One person close to the London-listed company insisted it was not about to launch an imminent bid for Teck Resources, but acknowledged that it was on a list of possible targets.
The sale of Teck’s coal division to Glencore for just under $7bn, which completed this week, has left it as a pureplay miner focused on copper and other metals essential to the energy transition.
Other global miners are also said to be interested in the idea of acquiring Teck, although any foreign bid would face intense scrutiny from, and potentially stringent conditions imposed by, the Canadian government.
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One mining banker said the prospects of a successful overseas offer for Teck were “negligible”.
Investors’ attention has turned again to the potential for megadeals in the mining industry after BHP tried to take over Anglo American in a complex deal which unravelled in May.
The Australian Financial Review newspaper reported in May that Rio had not ruled out making an offer for Anglo American, although it has yet to do so.
Spokespeople for Rio Tinto and Teck Resources said they did not comment on rumours or speculation.