Blackrock keen on M&A between major miners

BLACKROCK supports further mergers among large mining companies, arguing that greater scale would attract generalist investors and unlock the capital needed to develop the complex projects required to meet accelerating commodity demand, said Reuters in a report on Wednesday.Speaking at the Australian Financial Review conference in Perth, portfolio manager Olivia Markham said the mining sector’s relatively small market capitalisation compared to industries such as technology was a structural handicap. Larger companies trade at better multiples, enjoy cheaper access to capital and have the management depth to execute major projects, she said.“We’ve had a wave of M&A, but I see merit in more,” Markham said.Her comments follow the collapse earlier this year of merger talks between Glencore and Rio Tinto. Their merger would have created a $240bn company combining Glencore’s marketing operations and copper assets with Rio Tinto’s project development capabilities, said Reuters.Rio Tinto withdrew, citing insufficient cost synergies, though speculation persists that Glencore CEO Gary Nagle remains interested in reviving discussions. BlackRock holds stakes in both companies, as well as in BHP, said Reuters.Markham argued that commodity demand was structurally accelerating, driven by electrification, AI infrastructure build-out and defence spending, while supply investment remained severely inadequate. Higher prices would be needed to incentivise new production, she said.She also flagged uranium as a growing focus, citing energy independence pressures linked to tensions around the Strait of Hormuz.BlackRock has reduced its Australian mining exposure over the past five years, redirecting capital towards jurisdictions with stronger copper profiles and more competitive operating costs.The post Blackrock keen on M&A between major miners appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com