Rio Tinto’s Potential Takeover of Arcadium Lithium

Investing.com — Anglo-Australian miner Rio Tinto Ltd (ASX:RIO) has approached U.S.-listed Arcadium Lithium PLC (NYSE:ALTM) regarding a potential takeover, as confirmed by both parties in separate statements on Monday, though financial details were not disclosed.

Previous reports indicated that Rio was considering an acquisition that could value Arcadium between $4 billion and $6 billion, or possibly higher. On Friday, Arcadium had a market capitalization of approximately $3 billion, with its shares rising about 36% following the news.

While Rio Tinto has acknowledged considering the takeover, it emphasized that the approach is “non-binding” and there is no guarantee that a deal will materialize.

This potential acquisition aligns with a broader industry trend where global metal producers are consolidating lithium supplies, driven by increasing demand due to electric vehicles and a worldwide push towards electrification anticipated in the coming decades. Should this deal proceed, it may position Rio Tinto among the world’s largest lithium producers.

In related news, Australian Arcadium shareholder Blackwattle Investment Partners remarked that any offer between $4 billion and $6 billion would fall short of accurately valuing Arcadium.