Miners Glencore and Rio Tinto confirmed on Friday that they are in preliminary talks about a possible combination of some or all of their businesses, which could include an all-share merger - a deal that would create the world's largest mining company with a $260bn valuation.

Glencore rose 9.6 per cent as rival FTSE 100 firm Rio was given a deadline of February 5 to table a bid or walk away.

Rio and Glencore held discussions in 2024, but the talks were abandoned after they failed to agree on valuation.

European stocks hit a record high on Friday, with miners lifted by a potential mega-merger of giants Rio Tinto and Glencore.

London stocks were still higher by midday on Friday, with miners powering ahead after Glencore and Rio Tinto confirmed merger talks, and as investors eyed the release of the latest US non-farm payrolls report.