David Winning and Julie Steinberg of The Wall Street Journal report that Rio Tinto is expanding its interest in lithium.
SYDNEY—Rio Tinto has agreed to a $6.7 billion takeover of Arcadium Lithium, propelling it into the ranks of the top producers of a key commodity used in batteries for electric vehicles.
The Anglo-Australian mining giant on Wednesday said it is offering $5.85 a share in cash to acquire Arcadium Lithium ALTM 30.90%increase; green up pointing triangle, representing a 90% premium to the stock’s closing price at the end of last week. An agreement was reached with Arcadium Lithium’s directors just days after Rio Tinto said it was in deal talks.
Lithium has become a priority target for Rio Tinto as it seeks to rely less on iron ore for profit and produce more commodities that are growing in popularity as the world decarbonizes.
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