Shareholders Approve $6.7 Billion Sale of Arcadium Lithium to Rio Tinto
Arcadium Lithium shareholders have given the green light for a $6.7 billion sale to Australian mining giant Rio Tinto, according to a company announcement on Monday. The news was met with positivity in the stock market, with Arcadium’s shares climbing over 2% in after-hours trading.
However, the path to the deal is not without its obstacles. Arcadium is currently dealing with legal challenges from a section of its shareholders, who have lodged lawsuits against the company, accusing it of misrepresentation, concealment, and negligence in relation to the takeover deal.
Rio Tinto initially stated its intention to acquire Arcadium at a price of $5.85 per share, which represents a nearly 90% premium on Arcadium’s closing stock price on October 4, the day a potential deal was first reported by Reuters. The acquisition will grant Rio Tinto access to Arcadium’s lithium mines, processing facilities, and deposits located in Argentina, Australia, Canada, and the United States.
The deal will also inherit Arcadium’s customer base, which includes major automotive manufacturers such as Tesla, BMW, and General Motors. Arcadium Lithium President and CEO Paul Graves expressed his confidence in the transaction, stating that it will provide future benefits to customers, employees, and communities.
The acquisition is expected to provide a significant boost to Rio Tinto’s lithium production and expand its presence in the global lithium market.