The Rio Tinto Group $RIO (-3.97%)
$RIO (-6.16%) and Glencore Plc $GLEN (-3.26%) are expected to apply to the UK Takeover Panel for an extension to their ongoing merger talks as the companies need more time to clarify valuation issues. This was reported by Bloomberg, citing people familiar with the matter.
The two commodities giants have been negotiating the creation of the world's largest mining company since the beginning of January. The merged group would have a market value of around $235 billion and would become one of the largest copper producers in the world.
Both companies are still interested in completing the transaction, but disagreements over valuation have slowed the process. Glencore is pushing for a premium that reflects its position as a smaller company acquired by a larger competitor, while Rio Tinto shareholders are insisting that the group maintain financial discipline in its merger and acquisition strategy.