Arcadium Lithium Acquired by Rio Tinto

By Bobby Samwell • Wednesday, October 09 15:18 • Permanent Link

Arcadium Lithium has announced a definitive agreement with Rio Tinto for an all-cash transaction valued at $5.85 per share. This offer represents a premium of 90% to Arcadium's closing price on October 4, 2024, and a premium of 39% to its volume-weighted average price since the company was created on January 4, 2024. The transaction values Arcadium's diluted share capital at approximately $6.7 billion.

Arcadium's current annual lithium production capacity across a range of products, including lithium hydroxide and lithium carbonate, is 75,000 tonnes lithium carbonate equivalent. The company also has expansion plans in place to more than double capacity by the end of 2028.

Rio Tinto's CEO, Jakob Stausholm, mentioned that acquiring Arcadium Lithium is a significant step forward in Rio Tinto’s long-term strategy and will create a world-class lithium business alongside its leading aluminum and copper operations to supply materials needed for the energy transition.

The transaction has been unanimously approved by both the Rio Tinto and Arcadium Lithium boards of directors and is expected to close in mid-2025, subject to regulatory approvals and other closing conditions.

Goldman Sachs and J.P. Morgan are acting as financial advisors to Rio Tinto, while Linklaters LLP is serving as the lead legal advisor. On the other hand, Gordon Dyal & Co. is serving as the lead financial advisor, with UBS Investment Bank as the financial advisor to Arcadium Lithium, and Davis Polk & Wardwell LLP as the legal counsel.

This announcement does not constitute a prospectus or prospectus exemption document. Rio Tinto, as well as Arcadium Lithium, are advised to read the proxy statement and other relevant documents filed with the SEC when they become available, as they will contain important information about the proposed transaction.

The transaction website, including a Rio Tinto investor presentation, can be found at www.riotintoandarcadium.com. Following these announcements, the company's shares moved 30.8%, and are now trading at a price of $5.54. For more information, read the company's full 8-K submission here.

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