Jefferies says Rio Tinto focuses on productivity gains, Glencore deal unlikely

Rio Tinto

04/08/2026 22:51

** Jefferies says Rio Tinto RIO.AX is tracking well ahead of its initial target of $650 mln in annualised productivity benefits, and now aims to reach $1.8 bln by end-2026
** Says operational improvements and restoring Rio's position as a tier-one operator have been key priorities under CEO Simon Trott, with progress so far encouraging
** "Large-scale M&A seems unlikely for now, as paying a significant premium in a strong environment increases the risk of value destruction" - Jefferies
** In February, Rio Tinto walked away from takeover talks with Glencore, ending months of negotiations over a tie-up that would have created the world's largest mining company, with a market value exceeding $200 billion
** Possibility of future acquisitions remains, particularly during a downturn, but a deal involving Glencore is now unlikely - Jefferies
** Brokerage views Rio's risk-reward profile as balanced at current levels
** On ASX, RIO shares up more than 17% YTD

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com))