No. 1 producer BHP Group is interested in even bigger deals after announcing a $6.4 billion copper purchase last month. Rival Rio Tinto Group is. Mining and trading giant Glencore Plc is focused on “strategic” opportunities that build on existing connections, its chief executive said last month, while Saudi Arabia’s state mining company last week announced a new venture to invest in overseas assets.
BHP would be interested in the possibility of deals at the right price with companies such as Canadian fertilizer producer Nutrien Ltd. and US copper giant Freeport-McMoRan Inc., according to some of the people.— it has long been seen as a natural fit and the companies held talks about a potential partnership two years ago.
Yet the rich valuations, with many miners trading at or near records, could also put a damper on dealmaking unless a wider global recession leads to lower commodity and equity prices. The big producers are also continuing efforts to refine their existing asset portfolios at the same time as they seek growth.
Rio’s dealmaking focus has now shifted to lithium. The company has asked the biggest investment banks for pitches on lithium miners and is actively looking for deals.
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