0509 GMT - There are several ways Glencore shareholders might benefit if the miner pursues a merger with Rio Tinto, say Citi analysts Ephrem Ravi and Paul McTaggart. Glencore would gain exposure to iron-ore earnings, and growth from copper and lithium, they say. That would give it a much bigger pool of marketing options. If Glencore carves off coal assets to marry its metals operations with Rio Tinto's, that metals business could enjoy a rerating, say the analysts. Shareholders would retain exposure separately to the lucrative energy assets. Australian investors could also get fully franked dividends. For Rio Tinto, the main benefit of a tie-up would be diversification away from iron ore, the analysts say. The steel ingredient today accounts for most of Rio Tinto's earnings. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
June 04, 2025 01:09 ET (05:09 GMT)
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