Arcadium Lithium plc (NYSE: ALTM) shares soared in pre-market trading today, climbing 8.61% to $5.72 following significant regulatory progress for its proposed acquisition by Rio Tinto.
Global Merger Clearances Advance Deal
After reviewing the transaction, the Committee on Foreign Investment in the United States (CFIUS) decided that there are no outstanding national security issues. This development builds momentum for the transaction announced on October 9, 2024.
Arcadium Lithium has satisfied or waived merger control clearances across key jurisdictions, including the United States, Australia, Canada, China, Japan, South Korea, and the United Kingdom.
Additionally, investment screening approval has been secured in the UK. However, the deal still requires investment screening approvals in Australia, Canada, and Italy, as well as other customary conditions. ALTM expects the deal to be finalized by the middle of 2025.
Shareholders Support a Strategic Alliance
The acquisition of Arcadium Lithium was overwhelmingly approved by shareholders last month. This vote shows faith in the partnership with Rio Tinto, which is expected to strengthen the business’s standing as a world leader in the manufacturing of lithium chemicals.
Customers, staff, and local communities are anticipated to gain from the merger as it strengthens the company’s capacity to create and manage assets essential to the sustainable energy transition.
A Compelling Offer for a Bright Future
As per the deal, Rio Tinto will pay $5.85 per share in all-cash to purchase Arcadium Lithium. This pricing protects shareholders from execution risks and market volatility while highlighting the company’s long-term worth.
Rio Tinto will become a leader in energy transition commodities, from lithium to aluminum, by incorporating ALTM’s top-tier lithium operations into its portfolio.
A Global Leader in Lithium Innovation
Arcadium Lithium, a prominent global producer, offers a comprehensive range of lithium chemical products supported by an advanced manufacturing network and robust technology portfolio. ALTM’s expertise spans the entire lithium value chain, positioning it as a pivotal player in the global shift toward cleaner energy solutions.
