US lithium producer Arcadium Lithium has secured shareholder approval for its acquisition by mining giant Rio Tinto in an all-cash transaction valued at around $6.7bn.
The deal, announced in October this year, would make Rio Tinto one of the world’s largest lithium suppliers.
Rio Tinto agreed to acquire Arcadium for $5.85 per share, marking a 90% premium to the latter’s closing price on 4 October 2024.
Arcadium will offer Rio Tinto access to “long-life, low-cost” in various geographies, including Argentina, Australia, Canada, China, Japan, the US, and the UK.
Rio Tinto looks to use its scale and financial strength to unlock the complete potential of Arcadium’s portfolio.
The deal has already secured the green light from the two companies’ boards.
It has received approval or waivers from antitrust authorities in Australia, Canada, China, the UK, and the US. Besides, the UK has granted investment screening approval.
The completion of the acquisition is anticipated in mid-2025, contingent on remaining regulatory clearances as well as other closing conditions.
Arcadium Lithium president and CEO Paul Graves said: “Today’s vote of support by our shareholders confirms our shared belief that with Rio Tinto, we will be a stronger global leader in lithium chemicals production.
“Together, we enhance our capabilities to successfully develop and operate our assets while supporting the clean energy transition. We are confident that this transaction will provide future benefit to our customers, employees and the communities in which we operate, and I am excited by the path ahead.”
In August 2024, Arcadium Lithium entered an all-cash transaction to acquire the lithium metal business of Li-Metal.
