Rio Tinto to become third largest lithium producer with $6.7bn buy of Arcadium By Reuters

(Reuters) – Rio Tinto said on Wednesday it will acquire Arcadium Lithium in an all-cash deal valued at $6.7 billion in a deal that will make it the world’s third-largest lithium producer.

Rio Tinto (NYSE: ) will acquire the United States lithium producer for $5.85 per share, it said. The deal represents a 90 percent premium to Arcadium’s closing price of $3.08 a share on Oct. 4, the day Reuters exclusively reported a potential deal between the two firms.

Rio would have access to lithium mines, processing facilities and warehouses on four continents to fuel decades of growth, as well as a customer base that includes Tesla (NASDAQ: ), BMW (ETR: ) and General Motors ( NYSE:).

“We are confident that this is a compelling all-cash offer that reflects full and fair long-term value for our business and de-risks our shareholders’ exposure to the execution of our development portfolio and market volatility,” said Paul Graves, CEO of Arcadium Lithium. in a statement.

The transaction, which was unanimously approved by the companies’ boards of directors, is expected to close in mid-2025.