Arcadium Lithium has announced that its shareholders have overwhelmingly approved a $6.7 billion acquisition by Australian mining giant Rio Tinto.
Key Highlights:
Shareholder Approval:
Approximately 98% of Arcadium’s shareholders voted in favor of the sale.
Following the announcement, shares of Arcadium Lithium rose by about 7% in extended trading.
Deal Significance:
The acquisition is expected to close in mid-2025.
Upon completion, Rio Tinto will become the third-largest lithium miner globally, trailing behind Albemarle and SQM.
Legal Challenges:
Arcadium is currently facing legal obstacles, with some shareholders filing lawsuits alleging misrepresentation, concealment, and negligence related to the takeover.
Financial Details:
Earlier this year, Rio Tinto agreed to pay $5.85 per share in cash for Arcadium, representing nearly a 90% premium over the stock’s closing price on October 4, when news of the potential deal first emerged.
Strategic Advantages:
The acquisition will provide Rio Tinto access to Arcadium’s lithium mines, processing facilities, and deposits located in Argentina, Australia, Canada, and the United States.
The deal also includes a customer base featuring major companies such as Tesla, BMW, and General Motors.