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Rio Tinto and Glencore abandon merger plans that once promised to forge a $260 billion mining behemoth, ending months of high-stakes negotiations amid an industrywide scramble for copper and other metals powering the artificial intelligence boom.

After weeks of intense but cordial talks, the two global miners reached a stalemate over valuation and corporate control as a key regulatory deadline loomed Thursday. What could have become the world’s largest mining group instead unraveled at the negotiating table.

Price and Power Struggles Doom Deal

Rio Tinto said it had “determined that it could not reach an agreement that would deliver value to its shareholders,” effectively drawing a line under more than 18 months of intermittent discussions between the companies.

People familiar with the talks described a gap too wide to bridge. “The gap was too big,” one person said, while another noted that negotiations stretched to the final hours before the deadline. Even after weeks of sustained engagement, the companies failed to align on valuation, according to those close to the matter.

Earlier reports had highlighted significant divisions over both price and governance — fault lines that ultimately split the deal.

Glencore, in its own statement, signaled frustration with Rio’s insistence on keeping its chair and chief executive in charge of the combined entity. It also argued that Rio’s proposal “significantly undervalued Glencore’s underlying relative value,” particularly failing to properly reflect the strength of its copper business.

Sources said Glencore had pushed for a premium that would grant its shareholders roughly 40% ownership of the merged group. Bloomberg first reported details of the premium sought.

Market Reaction: A Sharp Jolt

Investors reacted swiftly. Glencore shares tumbled as much as 10% in late-afternoon trading in London before closing down 7% at £4.75. Rio Tinto’s London-listed stock was comparatively steady, slipping about 2.6% to £68.26.

The companies had publicly confirmed merger discussions in early January and faced a Feb. 5 “put up or shut up” deadline — the point by which Rio needed to make a firm offer or walk away unless both sides agreed to extend negotiations. With talks now terminated, they are barred from revisiting a merger for six months.

Still, people close to the discussions did not entirely dismiss the possibility of renewed talks after a cooling-off period. In mining, as in geology, pressure can reshape outcomes over time.