Rio Tinto has signed a definitive agreement to acquire US-based Arcadium Lithium in an all-cash transaction valued at approximately $6.7bn.
Under the deal terms, Rio Tinto’s indirect wholly owned subsidiary, Rio Tinto BM Subsidiary, will pay $5.85 per share in cash to Arcadium.
The acquisition price represents a significant premium over Arcadium’s recent trading prices.
Subject to approval by Arcadium’s shareholders and regulatory authorities, the transaction is expected to close by mid-2025.
The acquisition will integrate Arcadium’s lithium business into Rio Tinto’s portfolio, which includes commodities such as aluminium, copper, high-grade iron ore and now lithium.
Rio Tinto expects the acquisition to strengthen its position as global leader in energy transition commodities.
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By GlobalData
Arcadium has a current annual production capacity of 75,000 tonnes of lithium carbonate equivalent.
The company has plans to more than double this capacity by the end of 2028. With approximately 2,400 employees, Arcadium’s operations span several countries including Argentina, Australia, Canada, China, Japan, the UK and the US.
Rio Tinto CEO Jakob Stausholm said: “Acquiring Arcadium Lithium is a significant step forward in Rio Tinto’s long-term strategy, creating a world-class lithium business alongside our leading aluminium and copper operations to supply materials needed for the energy transition.
“Arcadium Lithium is an outstanding business today and we will bring our scale, development capabilities and financial strength to realise the full potential of its Tier 1 portfolio.”
The deal follows an announcement earlier this week that Rio Tinto was in talks to acquire Arcadium Lithium.
Arcadium Lithium CEO Paul Graves said: “We are confident that this is a compelling cash offer that reflects a full and fair long-term value for our business and de-risks our shareholders’ exposure to the execution of our development portfolio and market volatility.
“Arcadium Lithium is a leading global lithium producer with the widest offering of lithium chemical products and a world-class manufacturing network, backed by a broad technology portfolio and expertise in all aspects of the lithium value chain.”
