Economy

Glencore is set to publish its annual results on Wednesday, a moment that will focus attention on the company’s strategic direction following the collapse of merger talks with Rio Tinto. Negotiations between the two mining giants ended earlier this month, derailing a potential $260 billion (220 million euro) deal that analysts had suggested could have unlocked value in Glencore’s copper assets.

The breakdown in discussions stemmed, in part, from disagreements over leadership structure. Rio Tinto reportedly sought to retain both the chairmanship and the chief executive position in any merged entity, a condition Glencore rejected. The failure of the merger prompted a 7% drop in Glencore’s share price, according to reports.

The stalled merger occurs against a backdrop of soaring copper prices, which reached a record high of $14,527.50 per tonne in late January. Demand for the metal is being driven by its critical role in the transition to renewable energy, defense applications, and the infrastructure supporting the rapid growth of artificial intelligence. Despite rising extraction costs, the price of copper has increased by 41.7%.

Glencore had previously outlined ambitious plans to double its copper production to 1.6 million tonnes annually by 2035. The company intends to leverage a portfolio of copper mining projects, including the planned restart of its Alumbrera mine in Argentina. This expansion strategy follows a significant strengthening of Glencore’s copper holdings through its 2013 merger with Xstrata.

Rio Tinto’s interest in Glencore was largely motivated by access to its substantial copper resources. Previous discussions regarding a potential merger between the two companies had also failed in 2024, reportedly due to disagreements over pricing and Glencore’s continued involvement in coal production – an area Rio Tinto had previously exited due to environmental concerns. The current negotiations were revived in early January, with Rio Tinto initially given until February 5th to submit a formal acquisition offer, a deadline that was likely to be extended due to ongoing financial discussions.

The collapse of the Glencore-Rio Tinto deal follows BHP’s decision in November to abandon its pursuit of Anglo American, a move that would have created the world’s largest copper producer. These failed attempts at consolidation highlight the complex dynamics within the mining sector as companies navigate rising commodity prices and evolving geopolitical considerations.

New regulations taking effect January 1, 2026, will modify access to benefits under Italy’s Law 104, which supports individuals with disabilities, particularly concerning vehicle repairs and purchases. The changes stem from Law 106/2025 and will impact eligible workers and their families.

Currently, individuals benefiting from Law 104 can purchase vehicles with a reduced Value Added Tax (VAT) rate of 4%. However, the rules surrounding repairs to vehicles already purchased under this scheme have been a point of contention. Previously, limitations existed on the extent and frequency of repairs that could be conducted while maintaining the VAT benefit. The new legislation clarifies these rules, establishing a four-year limit for repairs before a vehicle must be replaced to continue benefiting from the reduced VAT rate.

Beyond vehicle-related benefits, Law 106/2025 introduces additional allowances for workers facing specific health challenges. Workers diagnosed with oncological, invalidating, or chronic illnesses will be entitled to an additional 10 hours of paid leave annually, supplementing the existing three days per month provided under Law 104. This benefit extends to parents of minor children with severe disabilities—defined as over 74%—in both the public and private sectors.

A further provision allows for a two-year, unpaid leave of absence for employees to care for family members with severe disabilities, guaranteeing job security upon their return. The process for submitting the necessary medical documentation for these benefits will also be streamlined, with doctors now able to transmit information digitally through the National Health System’s electronic health record (Tessera Sanitaria).

The Agenzia delle Entrate, Italy’s revenue agency, recently published an updated guide to tax benefits for people with disabilities. However, this guide does not yet fully incorporate the changes introduced by the 2026 Law of Finance, necessitating further integration to reflect the latest measures. The agency’s manual serves as a general overview of available bonuses, including those for vehicle purchases and home modifications, but requires updating to align with the new regulations.

While the Law of Finance 2021 extended provisions allowing workers in quarantine, those considered vulnerable, or those covered by Law 104 to have their absences treated as equivalent to hospitalization, the long-term impact of these measures remains under review. The implementation of Law 106/2025 is expected to further refine the support available to individuals with disabilities and their caregivers.