Rio Tinto’s ambition to acquire Glencore and create the world’s largest mining company worth more than $200 billion could see Wall Street advisers share more than $100 million in fees. Hours after the two mining giants said on Thursday they are discussing merging through an all-share buyout of “some or all” of Glencore by Rio, the race is on to secure a slice of the spoils, said three people with knowledge of the matter.
A representative for Rio, which has until February 5 to make a formal offer for Glencore or walk away under British takeover rules, said it expects to disclose advisers when a deal firms up. Glencore declined to comment. Companies typically retain several banking advisers to assist them in negotiations, plans for how to structure their businesses and liaising with investors and other stakeholders. Fees for merger and acquisition advice vary depending on the complexity of the deal and whether advisers provide funding. But a deal of the size of Rio-Glencore could generate fees that could easily exceed $100 million for the banks involved, two people with knowledge of such transactions said, and data on fees on top M&A deals compiled by LSEG showed. JPMorgan, Citi and UBS declined to comment.
The companies have yet to formally announce advisers, with some roles still being firmed up, sources at advisory firms jostling for positions told Reuters. There were no advisers listed on either company’s announcement confirming the talks, which typically include the deal advisers. JPMorgan, as the so-called corporate broker to Rio, is in the lead to advise the world’s biggest iron ore miner. UBS is also a broker to Rio, while Glencore does not have a formal broker. In Britain, publicly traded companies retain corporate brokers to steer them through liaising with investors and typically become the bank they turn to for advice on dealmaking. Meanwhile, Citi retains ties to Glencore, having advised it on previous deals, including its failed acquisition of Teck in 2023, two people with knowledge of the matter said.
