Rio Tinto to Acquire Arcadium Lithium for $6.7 Billion
Lithium has become a priority for Rio Tinto given its importance in EVs
SYDNEY—Rio Tinto said it has agreed to a $6.7 billion takeover of Arcadium Lithium, propelling it into the ranks of the top producers of a key commodity used in batteries for electric vehicles.
Rio Tinto on Wednesday said it is offering $5.85 a share in cash to acquire Arcadium Lithium ALTM 1.68%increase; green up pointing triangle, which represents a 90% premium to the stock’s closing price at the end of last week. An agreement was reached with Arcadium Lithium’s directors just days after Rio Tinto said it was in deal talks.
Lithium has become a priority target for Rio Tinto as it seeks to rely less on iron ore for profits and produce more commodities that are growing in popularity as the world decarbonizes.
Rio Tinto expects demand for lithium to rise in the decade ahead because of the metal’s importance to electric vehicles and in large batteries that store electricity that can be released into the grid when consumption surges.