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Why merger mania is coming to the fore in the mining industry

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Summary
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90% Informative

A prospective merger between Rio Tinto and Glencore would rank as the mining industry's largest-ever deal.

The two firms would have a market value of approximately $150 billion , leapfrogging longstanding industry leader BHP , which is worth about $127 billion .

Analysts were broadly skeptical about the merits of the proposed deal, pointing to limited synergies.

A Rio Tinto-Glencore merger raises questions about strategic alignment and corporate culture.

Analysts led by Wen Li at CreditSights said a merger would need careful structuring to avoid unwanted asset overlaps.

If this materializes, it could have broader implications for mega deals in the metals and mining space.

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