Rio Tinto to Favor Buybacks Over M&A to Fend Off Glencore

Rio Tinto Group is under pressure to deliver on the chief executive officer’s promise to become a “cash machine” for investors as it justifies snubbing a merger approach from Glencore Plc.

With Glencore effectively barred from making a renewed bid until April, Rio has a window to woo shareholders through stock buybacks and selling non-core assets. In August, CEO Sam Walsh said his $3.2 billion cost-cutting drive increases the options for distributing excess capital.