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Wall Street banks compete for advisory roles, eye big fees

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Rio aims to acquire Glencore ( GLCNF ), create $200 billion mining

giant

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Previous merger talks between Rio and Glencore ( GLCNF ) failed

By Andres Gonzalez, Amy-Jo Crowley and Anousha Sakoui

LONDON, Jan 9 (Reuters) - Rio Tinto's ambition to

acquire Glencore ( GLCNF ) and create the world's largest mining company

worth more than $200 billion could see Wall Street advisers

share more than $100 million in fees.

Hours after the two mining giants said on Thursday they are

discussing merging through an ‌all-share buyout of "some or all"

of Glencore ( GLCNF ) by Rio, the race is on to secure a slice of the

spoils, said three people with knowledge of the matter.

A representative for Rio, ​which has until February 5

to make a formal offer for Glencore ( GLCNF ) or walk away under British

takeover rules, said it expects ‍to disclose advisers when a deal

firms up. Glencore ( GLCNF ) declined to comment.

Companies typically retain several banking ⁠advisers to

assist them on negotiations, ⁠plans for how to structure their

businesses and liaising with investors and other stakeholders.

Fees for merger and acquisition advice vary depending on the

complexity of the deal and whether ‌advisers provide funding.

But a deal of the size of Rio-Glencore could ​generate fees

that could easily exceed $100 million for the banks involved,

two people with knowledge of such transactions said and data on

fees on top M&A deals compiled by LSEG showed.

The companies have yet to formally announce advisers, ⁠with

some roles still being firmed up, sources at advisory firms

jostling ‍for positions told ​Reuters. There were no advisers

listed on either company's announcement confirming the talks,

which typically include the deal advisers.

JPMorgan ( JPM ), as so-called corporate broker to Rio, is in the

lead to advise the world's biggest iron ore miner. UBS is also ‍a

broker to Rio, while Glencore ( GLCNF ) does not have a formal broker.

In Britain publicly traded companies retain corporate

brokers to steer them through liaising with investors and

typically become the bank they turn to for advice on dealmaking.

Meanwhile, Citi retains ties to Glencore ( GLCNF ) having advised it

on previous deals including its failed acquisition of Teck in

2023, two people with knowledge of the matter said.

JPMorgan ( JPM ), Citi and UBS declined to comment.

M&A DEALMAKING TICKING UP

Goldman Sachs ( GS ), JPMorgan ( JPM ) and Morgan Stanley ( MS ) led global M&A

rankings last year by fees, which rose ​19% from 2024, ‍driven by

strong deal activity in North America, Dealogic data shows.

The blockbuster mining deal talks come as bigger corporate

M&A ticks up, raising the stakes for advisers that miss out.

There were 68 deals for $10 billion or more in 2025,

totalling $1.5 ​trillion and more than double the previous year,

LSEG data shows. Looser U.S. regulatory scrutiny is emboldening

big companies and encouraging dealmaking.

Meanwhile, a drop in interest rates over the past year has

made it easier to finance deals.

Conditions for big deals are unlikely to get much better,

said a banker advising on cross-border transactions who is not

involved in the Rio-Glencore talks, adding that potential

bidders are thinking of striking now as they have become more

comfortable with the debate around tariffs.

There is no certainty that Rio's discussions with Glencore ( GLCNF )

will reach a successful outcome and advisory banks may be left

with little ​or no fees if a deal fails to materialize, leaving

them with payments of just a few hundred thousand dollars.

The two miners have discussed combining their operations

before and in 2014, Rio rejected a Glencore ( GLCNF ) merger offer, saying

it was not in the interest of its shareholders.

Merger talks in late 2024 also ended without a ‍deal.