Livent’s $10.6B Merger: Arcadium Lithium Aims for World’s Third-Largest Producer

Livent, a prominent US lithium miner, is set to engage with investors in Allkem Australian in the coming week. This crucial meeting precedes a significant vote scheduled for next month, where shareholders will decide on a groundbreaking $10.6-billion merger. If approved, this merger could catapult the newly formed entity, Arcadium Lithium, into the position of the world’s third-largest lithium producer.

The merger discussions, which have spanned the past couple of years, reached an agreement in May of this year. However, the timing of the deal announcement coincides with challenging conditions in the lithium market characterized by weakening demand and fluctuating prices.

By merging Livent and Allkem, Arcadium Lithium would emerge as a major player in the global lithium industry, boasting assets across key locations such as Australia, Canada, and Argentina. This consolidation would position Arcadium Lithium just behind industry giants Albemarle Corp based in the US and SQM in Chile.

The proposed merger has garnered support from Livent’s CEO, Paul Graves, who is expected to assume the top leadership position at Arcadium Lithium pending the approval of Allkem shareholders on December 19. Independent experts, as indicated in a comprehensive report by Kroll, have recommended the transaction.

Speaking about the potential merger, Graves outlined his vision for the newly formed company, stating that one of his initial priorities would be to expand Arcadium’s presence in Western Australia’s renowned lithium districts. This strategic move aligns with the broader goal of securing a strong foothold in regions known for their significant lithium resources.

Source: Asia Financial