The Rio Tinto Group $RIO (-1,26 %)
$RIO (-3,25 %) has contracted a team of bankers, including renowned dealmaker Simon Robey, to explore a potential transaction with Glencore $GLEN (-0,25 %) with Glencore.
The mining company has enlisted the financial advisory services of Evercore, which recently acquired Robey's London-based boutique Robey Warshaw.
JPMorgan Chase & Co. and Macquarie Group are also advising Rio Tinto on the matter.
Rio Tinto is a leading global mining group focused on exploring, mining and processing the world's mineral resources. The company's mission is to produce materials that are essential for the progress of humanity.
UBS Group, a corporate broker for Rio Tinto, is currently not actively involved in the transaction. Citigroup, which has traditionally been closely linked to Glencore and has been involved in its recent transactions, is reported to have been in talks to secure a role in the potential deal.
Sources familiar with the matter have requested anonymity due to the confidentiality of the information.
In recent days, Citigroup $C (-1,62 %), JPMorgan $JPM (-1,69 %) and UBS $UBSG (-1,6 %) have cut or suspended their ratings on Rio Tinto and Glencore shares, according to data compiled by Bloomberg.
Glencore is a multinational commodities trading and mining company. Its activities include the production and marketing of metals and minerals, energy products and agricultural products.
The potential deal and the appointment of financial advisers underline the strategic importance of the matter for Rio Tinto, although no formal offer has yet been announced. The involvement of top banks underlines the scale and complexity of the potential transaction between the two mining giants.
