Is the natural sector on the cusp of shrinking from four majors to just two super-majors?
It's a distinct possibility with merger mania now sweeping through the industry.
The handcuffs are off for BHP (ASX:BHP) Group Ltd (LSE:BHP, ASX:BHP), which is allowed to re-bid for London-listed Anglo American (JO:AGLJ) PLC (LSE:AAL) after the six-month cooling-off period lapsed - and Anglo having barely delivered on a raft of promises designed to enhance shareholder value.
Experts expect the Aussie Behemoth to revisit the deal at some point in the spring, if not earlier.
However, the real news (lead buried) is that Rio Tinto (ASX:RIO) and Glencore (LON:GLEN) were/are in negotiations to merge and create a £130 billion group that would leap-frog BHP to become the world's largest digger.
Glencore recently acquired Teck Resources’ coal unit for £5.6 billion, while Rio Tinto’s CEO, Jakob Stausholm, has expressed openness to major copper deals despite warning of risks associated with large-scale mergers.
It is unclear whether discussions between the two firms are ongoing. Both companies declined to comment on the Bloomberg exclusive, which was described as market speculation.