https://www.theglobeandmail.com/
Rio Tinto PLC is buying lithium producer Arcadium Lithium PLC in a big bet on the electric-vehicle battery metal in the midst of a vicious bear market.
The Anglo-Australian major is paying US$5.85 a share for U.S.-based Arcadium, a premium of 90 per cent to Friday’s close, in an all-cash transaction worth US$6.7-billion. The boards of both companies are in favour of the deal. Lithium prices have crashed in recent years owing to China flooding the market and a slowdown in electric-vehicle sales.
Arcadium, which both mines and processes lithium, has operations in Argentina, Australia, China, Japan, Britain and the United States. In Canada it owns 50 per cent of the Nemaska Lithium project. The Quebec government owns the other half. Arcadium also holds the Galaxy lithium project in northern Quebec, which is located about 100 kilometres from Nemaska.
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