Rio Tinto $RIO (-6,32%) has completed its acquisition of Arcadium Lithium plc $ALTM 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.

The globally active mining group Rio Tinto $RIO (-6,32%) has received all the necessary regulatory approvals for the acquisition of Arcadium Lithium $ALTM 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.

According to reports, Rio Tinto $RIO (-6,32%) following the completion of the 6.7 billion dollar takeover of Arcadium Lithium $ALTM to establish an independent lithium division. The new Rio Tinto Lithium unit will manage the 2.5 billion dollar Rincon project in Argentina.

The acquisition was announced in October last year and is expected to be completed by July 2025. It underlines the value that Rio Tinto sees in Arcadium's technical expertise.

Arcadium employs around 2,400 people in nine countries, with 84% of its revenues coming from Asia, the global center of lithium demand.

This positions Arcadium for growth as electric vehicle projects increase.

According to a Reuters report, Arcadium shareholders approved the sale last month. The acquisition is Rio Tinto's largest transaction in more than a decade.

Unfamiliar with integrating an entire company, Rio Tinto plans to take over Arcadium in stages.

Arcadium Lithium Plc $ALTMa producer of lithium chemicals, announced on Wednesday that the Committee on Foreign Investment in the United States (CFIUS) has approved the proposed acquisition of Arcadium Lithium by Rio Tinto Plc $RIO (-6,32%) has been approved.

However, the transaction is subject to investment screening approvals in Australia, Canada and Italy and other customary closing conditions.

Previously, Rio Tinto and Arcadium Lithium announced an agreement that will allow Rio Tinto to acquire Arcadium for $5.85 per share, or approximately $6.7 billion in cash.

The shareholders of Arcadium Lithium$ALTM have given the green light for a USD 6.7 billion sale to the Australian mining giant Rio Tinto. $RIO (-6,32%) Australian mining giant Rio Tinto. This was announced by the company on Monday.

The news was received positively on the stock market: Arcadium shares rose by over 2% in after-hours trading.

Nevertheless, the road to the final deal is not free of obstacles. Arcadium is currently facing legal challenges from some shareholders.

These shareholders have filed lawsuits against the company, accusing it of misrepresentation, concealment and negligence in connection with the acquisition. Arcadium itself disclosed this information in a regulatory filing earlier this month.

At the beginning of the year, Rio Tinto announced its intention to acquire Arcadium for 5.85 US dollars per share in cash. This purchase price represented a premium of nearly 90% to Arcadium's closing share price on Oct. 4, 2023 - the day Reuters first reported the potential deal.

The acquisition gives Rio Tinto access to Arcadium's lithium mines, processing facilities and deposits in Argentina, Australia, Canada and the United States.

In addition, Rio Tinto is also taking over Arcadium's customer base, which includes well-known car manufacturers such as Tesla, BMW and General Motors.

"We are confident that this transaction will bring long-term benefits to our customers, employees and the communities in which we operate. I look forward to the future with excitement," said Paul Graves, President and CEO of Arcadium Lithium, in a statement.