Allkem to buy US lithium producer Livent Corp to create $10.6 bln firm
Australian lithium miner Allkem Ltd (AKE.AX) has inked an agreement to acquire U.S.-based chemical manufacturing firm Livent Corp (LTHM.N) in a deal that will create a $10.6 billion entity, the two companies announced on Wednesday.
Following the transaction, Allkem will own 56% of the new firm, with the remaining stake going to Livent.
Allkem shareholders are set to receive the right to one share of a new public holding company for each existing Allkem share, while Livent shareholders will receive 2.406 shares in the new firm for each existing Livent share.
Allkem shares have risen 15% so far this year as demand for lithium, a key material in electric vehicle batteries, from automakers grows strongly. Global demand for the metal is expected to surge more than five-fold by 2030.
The deal comes as Australian lithium miners have been fending off takeover attempts by U.S.-based commodity producers. In March, Liontown Resources (LTR.AX) rebuffed a A$5.50 billion buyout bid from Albemarle Corp.(ALB.N)
This report’s information was first seen on REUTERS; to read more, click this link.