Arcadium Lithium Shareholders Approve $6.7 Billion Sale to Rio Tinto

(Reuters) – Arcadium Lithium announced on Monday that its shareholders have voted in favor of a $6.7 billion sale to Australian mining giant Rio Tinto (NYSE: RIO).

Shares of Arcadium Lithium rose about 7% in extended trading after the company revealed that approximately 98% of its shareholders voted in favor of the sale.

The deal is expected to close in mid-2025 and will elevate Rio Tinto to become the world's third-largest lithium miner, following Albemarle (NYSE: ALB) and SQM.

However, Arcadium is facing legal challenges as some shareholders have filed lawsuits claiming misrepresentation, concealment, and negligence concerning the takeover deal, as disclosed in a regulatory filing earlier this month.

Earlier this year, Rio Tinto indicated it would pay $5.85 per share in cash for Arcadium, which represents nearly a 90% premium over the stock's closing price on October 4, the day Reuters first reported on the potential deal.

The Australian miner will gain access to Arcadium's lithium mines, processing facilities, and deposits across Argentina, Australia, Canada, and the United States, along with customers like Tesla (NASDAQ: TSLA), BMW (ETR: BMWG), and General Motors (NYSE: GM).