Allkem, Livent to merge into $10.6 billion lithium chemical giant
Australia-listed lithium producer Allkem and US-based lithium chemical producer Livent are merging to create a $10.6 billion integrated lithium chemical company, Kallanish reports.
The all-stock merger will see Livent shareholders receive 2.406 shares of the new company for each existing Livent share. After completion, Allkem shareholders will own around 56% of the combined firm and Livent shareholders about 44%.
Livent’s ceo Paul Graves says the transaction will capitalise the highly complementary business models and collective strengths. “Together we can accelerate our growth plans and deliver more lithium, more reliably, and more quickly, than either of us can do alone,” he adds.
Increased economies of scale and resources, through the new company’s geographically adjacent asset portfolios in Argentina and North America, is one of the main synergies highlighted by the companies. Livent is a global leader in lithium processing technologies, producing a range of lithium chemicals. Allkem adds expertise in conventional brine-based lithium extraction, hard-rock mining and lithium processing.
With assets in Argentina, Australia, US, Canada, Japan, UK and China, the combined firm is forecast to become the third-largest lithium producer in the world, behind only Albemarle and SQM. The new company will have roughly 248,000 tonnes/year lithium carbonate equivalent (LCE) production capacity by 2027, surpassing Ganfeng’s forecast 229,000 t/y capacity, executives say in a presentation.
“We will create a leading global lithium chemicals company,” says Allkem’s ceo Martín Pérez de Solay. “I believe Allkem shareholders will realise significant benefits from the transaction as the business transforms into a truly global player with listings in the US and Australia.”
The transaction, which remains subject to regulatory approvals, is expected to close by year-end. The company will be led by Peter Coleman as chairman, Paul Graves as ceo and Gilberto Antoniazzi as chief financial officer. Allkem’s current ceo will provide consultancy services to the new company to facilitate a smooth transition.
The company will be incorporated in the Bailiwick of Jersey, with corporate headquarters in North America. The exact location and company name will be announced at a later date.
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