Rio Tinto confirms rumours of possible Arcadium Litihium takeover
By Benjamin Chiou
Date: Monday 07 Oct 2024
(Sharecast News) - Rio Tinto confirmed speculation on Monday morning that it has approached Philadelphia-based lithium chemicals producer Arcadium Lithium regarding a possible takeover.
"The approach is non-binding and there is no certainty that any transaction will be agreed to or will proceed," Rio Tinto said.
US-listed shares in Arcadium were up 10% on Friday, giving it a market capitalisation of $3.3bn, on rumours that a takeover offer could value the company somewhere between $4bn and $6bn.
The NYSE stock had slumped by nearly 60% so far this year before the takeover rumours began on the back of plummeting lithium prices, which have fallen due to oversupply in China.
Arcadium Lithium released a statement confirming the approach, but said it would not comment "unless and until there is news to share".
"Arcadium Lithium remains focused on executing its strategic vision and pathway to significant growth, as set forth in its recent Investor Day presentation in September 2024," the company said.
Arcadium's secondary shares in Australia soared 45% on Monday, while Rio Tinto's ASX-listed shares were down 2%.
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