Key Takeaways
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Rio Tinto introduced Wednesday that it has agreed to accumulate Arcadium Lithium in an all-cash deal at $5.85 per share, increasing its entry to a key ingredient of electrical car (EV) batteries.
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The deal values Arcadium at $6.7 billion and can must be accredited by Arcadium shareholders.
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The announcement despatched Arcadium shares hovering Wednesday morning.
Shares of Arcadium Lithium (ALTM) are hovering in premarket buying and selling Wednesday, after Rio Tinto (RIO) introduced plans to accumulate the lithium miner for $5.85 per share in an all-cash deal.
The transaction, which boosts the Anglo-Australian miner’s entry to a key ingredient of electrical car (EV) batteries, values Arcadium at $6.7 billion.
Arcadium shares have jumped since final week, following a report that Rio Tinto may very well be trying to purchase an organization within the lithium sector. The 2 corporations confirmed Rio Tinto’s strategy this weekend.
Arcadium Deal a ‘Counter-Cyclical Enlargement’ Amid Decrease Lithium Costs
Rio Tinto Chief Govt Officer (CEO) Jakob Stausholm referred to as the deal a “counter-cyclical growth,” with the lithium enterprise combining with the miner’s “main aluminium and copper operations to produce supplies wanted for the vitality transition.”
Lithium costs have been underneath strain amid cooling EV demand.
The businesses anticipate the deal to shut in mid-2025, following approvals from Arcadium shareholders.
Arcadium itself is lower than a yr outdated, created in January from the merger of smaller miners Allkem and Livent.
Arcadium shares surged 31% in premarket buying and selling at $5.54 following the announcement, placing them on monitor to their highest open since March. Rio Tinto’s American depositary receipts (ADRs) have been down 1.5% to $65.65.
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