Following press speculation that it was to be merged with fellow mining company Glencore, Rio Tinto has issued a statement stating that no discussions are taking place.
It confirmed that Glencore had made an approach regarding a potential merger of in July this year.
It is believed that the deal would have created the world’s largest publicly listed mining group.
The Rio Tinto board, after consultation with its financial and legal advisors, concluded unanimously that a combination was not in the best interests of Rio Tinto’s shareholders.
Rio Tinto say that the board’s rejection was communicated to Glencore in early August and there has been no further contact between the companies.
Jan Du Plessis, chairman of Rio Tinto, said: “Under the leadership of Sam Walsh and Chris Lynch, Rio Tinto has made significant progress in refocusing and strengthening its business.
“The board believes that the continued successful execution of Rio Tinto’s strategy will allow Rio Tinto to increase free cash flow significantly in the near term and materially increase returns to shareholders. Rio Tinto’s shareholders stand to benefit from the very considerable value that this will generate.”