Rio Tinto's (ASX:RIO) appointment of Simon Trott as chief executive can lead to potential mergers and acquisitions after an expected wait of at least six months, said RBC Capital Markets in a Wednesday note.

The company said late Tuesday it has appointed Trott as CEO effective Aug. 25.

The research firm noted that Trott has been with the company for more than 20 years in a variety of roles across several commodities, including heading up the salt/ uranium/borates business unit as well as the diamonds division in 2016, and was appointed the first chief commercial officer from 2018 to 2021.

However, RBC said that the reports of the Glencore-Rio Tinto merger feel "more of a stretch than ever."

The research firm believes that Rion needs to bring iron ore costs under control to close the gap with BHP.

RBC Capital Markets has a neutral sentiment on the London Stock Exchange-listed Rio Tinto PLC with a price target of 4,700 pounds sterling.