Rio Tinto is pushing for its chair and CEO to retain their roles, while Glencore is holding out for a hefty premium, as the deadline for a potential merger between the companies looms, the Financial Times reported on Wednesday.
Negotiations for the deal, which began in early January, are expected to continue beyond Thursday’s deadline, the FT said, citing people close to the talks.
Under UK takeover rules, a potential bidder has 28 days from being identified to either announce a firm intention to make an offer or walk away. The current deadline expires on Feb 5, though the parties could request an extension.
The miners remain far apart on valuation and governance issues, the report added, raising doubts over whether the differences can be resolved.
Rio Tinto did not immediately respond to Reuters‘ request for comment, while Glencore declined to comment. Reuters could not immediately verify the report.
In January, the companies said they were in early talks of a merger in what could create the world’s largest mining company with a combined market value of nearly $207 billion.
(By Abu Sultan; Editing by Tasim Zahid and Vijay Kishore)
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