Rio Tinto CEO says Glencore a "poor strategic match"

Rio Tinto's chief executive Sam Walsh has attempted to ward off a new approach from smaller rival Glencore, but admitted he is not pursuing a major acquisition to beef up its defence from a potential takeover.

The mining groups were in discussions in July regarding a potential merger, but Rio decided at the time that "a combination was not in the best interests of […] shareholders".

A tie-up would merge the world's second- and fourth-largest miners with a combined market value of close to £100bn.

However, Walsh said this week that the two firms were "a poor strategic match".

At an investor seminar on Thursday, Rio reiterated its commitment to "materially increase cash returns to shareholder in a sustainable way".

"I see speculation that we are going to rush out and buy somebody. Let me reassure you that we are not looking at any major M&A. We are not looking at doing anything stupid," Walsh was reported as saying.

However, he said that the company would still consider selling off some assets if the right offer comes along.

"There are no sacred cows […] If anybody, including Glencore, wants to come and make an offer that recognises the true value of assets […] then of course we are going to take a look at it," he said.

After ruling itself out of making a bid in October, Glencore has to wait six months before returning to the table under UK takeover rules. This period ends in April.

Rio Tinto and Glencore were trading 0.1% and 0.7% lower on Friday morning, respectively.