Rio Tinto Group, a multinational mining and metallurgical company, has entered into a final agreement to acquire the American company Arcadium Lithium plc. This is reported in a press release from Rio Tinto.
The transaction value is $6.7 billion at a price of $5.85 per share (90% higher than the closing price on October 4, 2024).
As a result of the deal, Rio Tinto will add the Arcadium lithium division to its asset portfolio, which is a global, vertically integrated producer of lithium chemicals and owner of assets with long service life, low-cost operations and promising projects. The current annual capacity of Arcadium for lithium production, including lithium hydroxide and carbonate, is 75 thousand tons and can be more than doubled by the end of 2028.
Since the beginning of 2024, lithium prices have fallen by 22% amid an oversupply in the market. Nevertheless, Rio Tinto expects lithium demand to grow within ten years, taking into account the transition to clean energy.
Arcadium Lithium is the world's leading lithium producer with the widest range of lithium chemical products and a world—class manufacturing network backed by a wide range of technologies and expertise in all aspects of the lithium value chain. The company owns stakes in various properties in Argentina, Canada, China and Western Australia. Arcadium Lithium plc was founded in 1944 and is based in Shannon, Ireland.
Rio Tinto Group is an Australian-British concern and the third largest multinational mining and metallurgical company in the world for the extraction and processing of minerals (iron ore, copper, diamonds, gold and uranium) in 18 countries. The company includes two operating companies — Rio Tinto Limited and Rio Tinto plc. The headquarters are located in Melbourne and London with offices in Canada, the USA, Brazil, Mongolia, Guinea and South Africa. More than half of the company's sales are in China.
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