Rio Tinto $RIO (-0,88 %) acquires Arcadium Lithium $LTM (-1,1 %)
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.