Rio Tinto CEO Simon Trott is prioritizing cost cuts and asset sales after the company’s failed merger talks with Glencore. A six-month standstill under UK takeover rules has expired, but Trott has reassured Australian investors that Rio Tinto has no reason to revisit talks with Glencore.

Background

Rio Tinto and Glencore had discussed a potential $200 billion mega-merger, but Trott found no value case and the company walked away in February. The merger would have combined Glencore’s marketing and copper assets with Rio Tinto’s operational expertise.

Glencore has been trying to prove up its copper assets and raise its visibility in Australia. The company will host calls with Australian institutional investors after reporting its half-year results.

Analysis

Analysts believe that Rio Tinto is unlikely to revive merger talks with Glencore, citing the company’s focus on cost cuts and asset sales. Glencore’s shares have jumped 33% this year, making a potential merger less attractive to Rio Tinto shareholders.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.