Arcadium Lithium Shareholders Vote to Sell to Rio Tinto for $6.7 Billion
Arcadium Lithium announced on Monday that its shareholders have voted in favor of a $6.7 billion sale to Australian mining giant Rio Tinto. The deal, which is expected to close in mid-2025, will propel Rio Tinto to the world’s third-largest lithium miner position, behind only Albemarle and SQM.
The sale was approved by nearly 98% of Arcadium’s shareholders, with the company’s stock price rising approximately 7% in extended trading following the announcement. Under the terms of the deal, Rio Tinto will pay $5.85 per share in cash for Arcadium, a nearly 90% premium to the stock’s closing price on October 4, the day Reuters exclusively reported a potential deal.
As part of the deal, Rio Tinto will gain access to Arcadium’s lithium mines, processing facilities, and deposits in Argentina, Australia, Canada, and the United States, as well as customers including Tesla, BMW, and General Motors.
The acquisition is not entirely without controversy, however, as some Arcadium shareholders have filed lawsuits against the company alleging misrepresentation, concealment, and negligence regarding the takeover deal. The company revealed these legal challenges in a regulatory filing earlier this month.