Rio Tinto $RIO (-1,12%) has completed its acquisition of Arcadium Lithium plc $ALTM (+0%) for USD 6.7 billion after the Royal Court of Jersey approved the Scheme of Arrangement on March 5.
Rio Tinto is now the ultimate parent company of Arcadium Lithium, which becomes Rio Tinto Lithium and also includes the Rincon Lithium Project.
The acquisition will make Rio Tinto a global leader in materials for the energy transition and a major lithium producer with one of the largest lithium resources in the world.
Rio Tinto Lithium aims to increase the capacity of its Tier 1 plants to over 200 thousand tons of lithium carbonate equivalent (LCE) per year by 2028. Complementary technologies and geographies offer compelling value driven by accelerating volume growth in a growing market and are expected to deliver significantly higher EBITDA and operating cash flow in the coming years.
Rio Tinto CEO Jakob Stausholm said: "We are very pleased to welcome Arcadium's employees to Rio Tinto. Together we are accelerating our efforts to source, mine and produce the minerals needed for the energy transition. By combining Rio Tinto's scale, financial strength, operational and project development experience with Arcadium's Tier 1 assets, technical and commercial capabilities, we are creating a world-class lithium business that sits alongside our leading iron ore, aluminum and copper operations.
"We believe we are well positioned to deliver the materials needed for the energy transition while focusing on respecting local communities, minimizing environmental impact and creating value for shareholders and other stakeholders."
Arcadium Lithium shareholders will receive a total cash payment of $5.85 for each share held on the closing date. Rio Tinto will finance the acquisition by utilizing its existing bridge loan facility, which it intends to replace with long-term debt financing.
In connection with the closing of the transaction, the shares of Arcadium Lithium and the CHESS Depositary Receipts (CDIs) will be delisted from the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX), respectively.
