Jan. 10 at 1:02 AM
Rio Tinto and Glencore confirmed they’re back in preliminary talks on a potential combination (including scenarios where Rio buys Glencore in an all-share deal), reviving a mega-merger idea that previously stalled over valuation and structure. Glencore jumped while Rio slipped on the headline, as markets priced M&A optionality vs. execution/antitrust risk. 
Tickers:
$RIO $GLNCY $FCX
Again our view is this is a copper scarcity / iron-ore saturation trade in disguise: Rio needs more copper duration, Glencore has it (plus a coal “baggage” that investors are now less allergic to). Pricing-wise, GLNCY is the optionality long; RIO is the “show me the premium + regulatory path” short-term overhang—while copper-levered names (and the copper complex) stay the cleanest way to express what the deal is really about. 
