Rio Tinto has formally announced the acquisition of lithium producer Arcadium. The company will pay 5.85 US dollars per share in an all-cash transaction, corresponding to a total value of approximately 6.7 billion dollars. The transaction represents a significant premium of 90 percent to Arcadiumʼs last closing share price and 39 percent to the companyʼs average share price since inception in January of 2024. Arcadium operates lithium projects globally, including in Argentina, Canada and Australia, and has 75,000 tonnes of lithium carbonate equivalent production capacity, which is expected to more than double by 2028.
Acquisition to close by mid-2025
According to Rio Tinto, the acquisition comes at a cyclically favourable time for the lithium market following the recent sharp decline in lithium prices. The company expects significant long-term demand growth in the lithium sector, driven by the increasing use of electric vehicles and energy storage solutions. The acquisition has been unanimously approved by the boards of both companies and is expected to be completed by mid-2025, subject to Arcadium shareholder as well as regulatory approvals.
Source:
https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-acquire-arcadium-lithium
