Rio Tinto $RIO (-1.34%) acquires Arcadium Lithium $LTM
for 6.7 billion US dollars.

Mining giant Rio Tinto has entered into a binding agreement to acquire Arcadium Lithium in an all-cash transaction valued at approximately US$6.7 billion, or US$5.85 per share. This acquisition price represents a significant premium of 90% over Arcadium's closing share price on October 4, 2024 and a premium of 39% over the volume weighted average price since Arcadium's inception on January 4, 2024.

The deal will integrate Arcadium's lithium business into Rio Tinto's portfolio, which includes aluminum, copper, high-grade iron ore and now lithium. This positions the company as a global market leader in materials critical to the energy transition. Arcadium Lithium is recognized for its diversified production and processing capabilities, offering a range of lithium products and a robust portfolio of growth projects.

Rio Tinto CEO Jakob Stausholm stated that the acquisition of Arcadium is consistent with Rio Tinto's long-term strategy and will leverage the company's development capabilities and financial strength to realize the full potential of Arcadium's Tier 1 resource base. Stausholm also emphasized the strategic timing of the transaction, which is consistent with market growth and the addition of high-quality assets to Rio Tinto's existing operations.

This strategic move is expected to double Arcadium's current annual lithium production capacity of 75,000 tons of lithium carbonate equivalent by the end of 2028. The combined Rio Tinto and Arcadium assets will form the world's largest lithium resource base, with Rio Tinto becoming a leading lithium producer on a pro forma basis

Completion of the acquisition is expected in mid-2025, subject to Arcadium shareholder approval, Royal Court of Jersey and customary regulatory approvals.

Markus@sinus_2pi

8Mon

Is it already known how much a share of $LTM will be worth in shares of $RIO?

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S.A.U.@SAUgut77

@sinus_2pi 5.85 per Arcadium share, you can then extrapolate the rest.

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@SAUgut77 at a current share price of $RIO of 65$ therefore approx. 1/10 share, right ?

@sinus_2pi This is a pure cash transaction, i.e. no new Rio shares will be issued and you will receive cash for your shares.

Dohe82@Dohe82

I have to ask a stupid question... how exactly does this takeover work for the private investor? Will there be a direct purchase offer of 5.85$ via the broker in the near future?

@Dohe82 As far as is known so far, this is a pure cash transaction. This would lead to a payout of the shares if approved by the shareholders and Co.

Of course, you can then invest in Rio if necessary 😉

Ergo, there is then simply a payout per share after approval and selling prematurely at EUR 5.20 would not be so smart...?

Rio Tinto is actually already in the portfolio :D