Jan. 8 at 9:11 PM
PickAlpha Mid-Day:
Glencore said it’s in preliminary talks with Rio Tinto about a potential tie-up, including an all-share structure where Rio would buy Glencore (reported). Glencore ADRs jumped ~7.7% while Rio ADRs fell ~3.9% on the headline.
Tickers:
$GLNCY $RIO $FCX
Our view is this is copper scarcity M&A — the market is pricing a race to lock up long-duration copper exposure while the metal sits near highs. If talks progress, GLNCY is the optionality and RIO is the financing/antitrust discount. If it fizzles again on valuation, GLNCY gives back most of the pop and copper beta stays with the pure plays.
