Glencore-Rio: “Wrong Deal at the Right Time” says Russell
In an article for Reuters, Clyde Russell suggested that the proposal recently announced by Glencore (LSE:GLEN) to merge with Rio Tinto (NYSE:RIO) could have some difficulties.
In an article for Reuters, Clyde Russell suggested that the proposal recently announced by Glencore (LSE:GLEN) to merge with Rio Tinto (NYSE:RIO) could have some difficulties.
As quoted in the publication:
Glencore’s proposal to create a $160 billion behemoth is certainly audacious, and may even make sense for shareholders of both companies if priced attractively.
But even if it were successful, such a deal would do little resolve the key problems bedevilling the outlook for many commodity markets, and the companies that produce those resources.
The Glencore-Rio Tinto merger proposal makes for good headlines and gives day-traders something to focus on, but it may be a case of Macbeth’s “sound and fury, signifying nothing”.