Is M&A still the answer for Rio Tinto? ... this investment bank thinks so
Citi says Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) is still “searching for a differentiator” in its investment case. and, for many investors, the view will be “most routes lead through M&A”. The innvestment bank's analysts argue Rio’s latest results didn’t meaningfully reset...
Rio Tinto Ltd(LSE:RIOASX:RIOOTC:RTNTF) View Price & Profile Is M&A still the answer for Rio Tinto? ... this investment bank thinks so
Published: 10:42 25 Feb 2026 EST
Citi says Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) is still “searching for a differentiator” in its investment case. and, for many investors, the view will be “most routes lead through M&A”.
The innvestment bank's analysts argue Rio’s latest results didn’t meaningfully reset expectations, coming “just a couple of months after the CMD in Dec and after the aborted talks with Glencore”, leaving the update as “largely a reiteration of what the market knew”.
In investor conversations after the numbers, Citi says a key sticking point remains Rio’s position in copper. The miner is seen as “lagging the other diversifieds in its pivot to copper”, with Citi adding that “organic growth is not going to close that gap”, pushing the market view that the gap “can be overcome only through M&A”.
Operational competitiveness in iron ore is also back in focus. Citi says the “iron ore cost gap vs BHP seems to be widening” and suggests that closing the gap “could add 8–10% to the share price”.
Meanwhile, Citi adds that potential portfolio moves are losing their ability to move the needle in the eyes of investors. A proposed “$5–10bn” of Rio asset sales is “now not perceived as a significant differentiator”, given what Citi calls the “rapid progress” BHP has made on its own “$10bn value unlock”.