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Allkem Ltd (ASX:AKE) shares have closed at AU$10.410 apiece on Wednesday, this signifies a drop of 1.70% compared to the previous day.
The share movement is set to halt by Friday due to the recent approval of the company's merger with Livent Corp (NYSE:LTHM) by its shareholders.
Merger Approval Details
The unanimous agreement among Allkem shareholders during yesterday's scheme meeting led to an 89.27% vote in favor of the merger. Despite some shareholders expressing reservations about the merger terms, the overall approval paves the way for significant changes in the market landscape.
Commenting on the merger, Allken's managing director and CEO, Martin Perez de Solay, emphasized the potential of Arcadium Lithium plc to meet the surging demand for lithium chemical products while assuring commitment to substantial growth initiatives.
Allkem's Chairman, Peter Coleman, highlighted the synergies expected from the combination of Allkem and Livent, envisioning a robust and vertically integrated business model to enhance operational efficiency across the lithium value chain.
Immediate Future and Court Approval
With Livent shareholders also greenlighting the merger, Allkem is moving swiftly to secure the Federal Court of Australia's approval today. If proceedings unfold as planned, the scheme will soon become effective, with Allkem shares to be suspended from trade at Thursday's market closure. Subsequently, Arcadium Lithium shares will commence trading on Friday.
What Lies Ahead?
The impending merger holds substantial implications for both Allkem and Livent shareholders. Once the court approval is secured and the scheme comes into effect, the market will witness a transition from Allkem shares to Arcadium Lithium shares. This shift is expected to bring about notable changes in the trading dynamics, impacting investors and market sentiment.
Moreover, the combined entity, Arcadium Lithium plc, is poised to capitalize on its enhanced operational efficiency, product flexibility, and a significant growth pipeline, as expressed by the leadership of both companies.
Conclusion
The merger approval between Allkem and Livent signifies a significant milestone in the lithium market. With shareholder consensus and court approval anticipated imminently, the transformation into Arcadium Lithium plc is on the horizon. This transformation is poised to reshape the landscape of the lithium industry, reflecting a strategic move aimed at meeting market demands and delivering long-term value.
