The globally active mining group Rio Tinto $RIO (-0,51 %) has received all the necessary regulatory approvals for the acquisition of Arcadium Lithium $ALTM (+0,45 %) worth 6.7 billion US dollars, paving the way for the transaction to be completed at the beginning of March.
Arcadium Lithium confirmed on Friday that it has received merger control clearance in Australia, Canada, China, Japan, South Korea, the United Kingdom and the United States under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. In addition, investment screening approvals have been granted in Australia, Canada, Italy, the United Kingdom and the United States, including approval by the Committee on Foreign Investment in the United States.
The final procedural step for the transaction will be the hearing before the Royal Court of Jersey on March 5, after which the deal is expected to close on March 6.
The acquisition, announced in October, is a strategic move by Rio Tinto into the lithium sector as part of its wider energy transition ambitions. The mining giant is betting on the long-term growth in demand for lithium, particularly for electric vehicle batteries and energy storage systems, despite the current depressed spot prices.
"The acquisition of Arcadium Lithium is a significant step in Rio Tinto's long-term strategy and creates a world-class lithium business," said Jakob Stausholm, CEO of Rio Tinto, when announcing the acquisition. He pointed out that lithium demand is expected to grow at double-digit rates until 2040, with a market deficit expected by the end of the decade.
The acquisition will give Rio Tinto access to Arcadium's diversified lithium assets, including hard rock, conventional brine and direct lithium extraction sources, as well as its lithium chemical manufacturing capabilities. Arcadium, which operates in Argentina, Australia, Canada, China, Japan, the UK and the US, currently has a production capacity of 75,000 tons of lithium carbonate equivalent and plans to more than double this by 2028.
