ACTIVIST fund Palliser Capital has urged Rio Tinto to mount a counterbid for Teck Resources which recently set out terms for a nil-premium merger with Anglo American, according to Reuters on Monday.
Palliser also said Rio Tinto should unify its dual-listed structure and spin off its base metals business to create a copper powerhouse.
In a letter to the board dated October 17, Rio shareholder Palliser urged the company to challenge Teck’s agreed merger with Anglo American to gain control of a tier-one copper portfolio that could produce 1.3 million tons annually.
Palliser – which holds approximately $400m in Rio shares, less than one percent – confirmed the letter’s authenticity but declined further comment, said Reuters.
The letter argues the deal would diversify Rio beyond iron ore, unlock at least $800m in cost synergies, and accelerate copper growth by a decade at lower risk than greenfield expansion, better positioning the miner for the global clean energy transition.
Rio Tinto told Reuters it remained focused on “maximising the value we deliver for shareholders” and would provide a strategy update at its capital markets day in five weeks. The company said arguments over its dual listing had been extensively debated and rejected by shareholders.
Under Palliser’s plan, Rio – currently dual-listed in London and Sydney – would unify into a single Australian holding company before splitting into two entities: one centred on copper, aluminium, and zinc in Canada, the other on iron ore in Australia.
“Unification is not optional – it is a prerequisite for any credible strategic combination,” the letter stated, urging swift action before the Anglo-Teck tie-up is finalised.
Shareholders in Anglo and Teck are due to vote on their tie-up plan on December 9.
