Arcadium Lithium Shareholders Approve $6.7 Billion Sale to Rio Tinto

2 min read | December 24, 2024 12:23 PM AEDT | By Team Kalkine Media

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Arcadium Lithium Shareholders Approve $6.7 Billion Sale to Rio Tinto — Image source: Shutterstock

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Highlights:

Shareholder Approval: Nearly 98% of Arcadium Lithium's shareholders voted in favor of the $6.7 billion sale to Rio Tinto.

Legal Challenges: Some shareholders have filed lawsuits, claiming misrepresentation and negligence related to the deal.

Strategic Acquisition: The acquisition will position Rio Tinto as the third-largest lithium miner and provide access to significant lithium assets in multiple countries.

Arcadium Lithium (ASX:LTM) has announced that its shareholders have overwhelmingly voted in favor of a $6.7 billion sale to Australian mining giant Rio Tinto. The company revealed that nearly 98% of shareholders supported the deal, leading to a 7% increase in Arcadium’s share price during extended trading.

The sale, expected to close in mid-2025, will position Rio Tinto as the world’s third-largest lithium producer, trailing behind Albemarle and SQM. The acquisition will provide Rio Tinto with access to Arcadium's lithium mines, processing facilities, and deposits across Argentina, Australia, Canada, and the United States. This move will also expand Rio Tinto’s customer base, including major players like Tesla, BMW, and General Motors.

However, the deal is facing some legal challenges. A group of Arcadium’s shareholders has filed lawsuits against the company, alleging misrepresentation, concealment, and negligence in relation to the takeover. These legal hurdles are currently being addressed, as disclosed in a regulatory filing earlier this month.

Rio Tinto’s offer of $5.85 per share in cash, announced earlier this year, represents a nearly 90% premium over Arcadium’s stock price on October 4, the day Reuters first reported the potential deal.

As of 24 December 2024, shares of Arcadium Lithium (LTM) surged almost 8.87%, reaching AU$8.405 per share.

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