LTM - Arcadium Lithium

[System]

Livent starts Australian campaign for $10.6 billion Arcadium Lithium merger
By Scott Murdoch and Melanie Burton
November 12, 2023

• Deal would create third-biggest lithium producer
• Arcadium aims to expand footprint in Western Australia
• CEO says no clear need to take Australian JV partner

SYDNEY, Nov 12 (Reuters) - U.S lithium major Livent (LTHM.N) will begin meeting Allkem (AKE.AX) Australian investors from Monday ahead of a vote next month to approve a $10.6 billion merger that would form the world's third-largest producer amid weakening demand and prices for lithium.

Livent CEO Paul Graves will take the top job at the newly minted Arcadium Lithium, if Allkem shareholders vote for the deal on Dec. 19. The transaction has been recommended by independent experts in a report compiled by financial advisors Kroll.

Merging the two companies would create the world's third-largest lithium producer by volume with assets spanning Australia, Canada and Argentina. U.S.-based Albemarle Corp (ALB.N) and Chile's SQM (SQMA.SN) are the top two producers.

More: https://www.reuters.com/business/li...n-106-bln-arcadium-lithium-merger-2023-11-12/

It is anticipated that LTM will list on the ASX during December 2023.

Allkem

Allkem is a global lithium chemicals company helping the world build a brighter tomorrow.

www.allkem.co

 

[Dona Ferentes]

Arcadium shares hit a 52-week high of $11.57 on Friday. Of course, Arcadium is a 'brand new' share that has only been trading for a week. The newly formed entity is the result from the blockbuster merger of Allkem and US lithium giant Livent Corp. Over the first week of trading, it lifted 2.56% overall.

It's been a difficult year for ASX 200 lithium stocks, with commodity prices spiralling by more than 80% due to falling demand in China and a global oversupply.

 

[Dona Ferentes]

no-one is immune..

 

[Dona Ferentes]

A Hunterbrook Media investigation found that a major global lithium supplier is draining water from the Argentinian Andes, forensic accountant finds red flags in financials.

on the wires

 

[Dona Ferentes]

since Listing late 2023, LTM went to $11.70, then a retreat to as low as $3.30 last month. Was up 2 per cent to close at $4.18 on Friday

.... there were reports last week that RIO might move into lithium, looking at Arcadium or the world’s largest lithium producer, Albemarle. Rio Tinto’s market value is close to $47bn whereas Albemarle has a market value of $US11bn so it’s well within its grasp, while Arcadium Lithium would be a more modest deal with its market value at $US3bn.

....And now

Rio Tinto is in talks to buy the US-listed Arcadium Lithium in a deal shaping up to be worth at least $US4bn ($A5.9bn).
The Australian’s DataRoom column flagged talk in the market last week that Rio Tinto could be looking at the Australian and New York dual listed miner Arcadium Lithium ahead of a rally in the share price of Rio.

A spokesperson for Rio Tinto declined to comment.

 

[DannyB0000]

Arcadium Lithium is undervalued like Woodside Energy. I paid about $3.66 for the stock and am currently up about 14% with it. it's the third biggest Lithium miner in the world and am comfortable holding it through my super fund. I thought buy one of the lithium miners while lithium prices are depressed and wait for the next boom.

Obviously Rio Tinto are looking at taking advantage of the situation while Lithium prices are still down to.

ALTM is currently up about 35% in Northern American after hours trade.

 

[Captain_Chaza]

Everything I Own is Undervalued!
Sailing the LTM------------One WEEK at a Time--------------------------------&------------------One Day at a Time

 

[Dona Ferentes]

yep

Rio Tinto confirms approach to Arcadium Lithium​

07 October 2024

Rio Tinto today confirmed that it has made an approach to Arcadium Lithium regarding a potential acquisition of Arcadium Lithium by Rio Tinto.

The approach is non-binding and there is no certainty that any transaction will be agreed to or will proceed. Rio Tinto will not make further comment until or unless an update is appropriate.

 

[peter2]

@Captain_Chaza You're gonna need a bigger boat for all the loot you earned from LTM this week. Well done.

 

[Captain_Chaza]

Your are quite Right! Capt P2

My Largest holding in the last few decades has been my favourite Heavyweight RIO
But we also have a small Holding >4.9 M of the Magnificent WC8---bought under 0.035c LOL!
I'll post that chart on the weekend

And a few more WC8, PMT and IGO lately

It seems the winds have pushed Us into holding a lot of LITHIUM Sails
More than I had Planned but very happy it happened

Sailing the Magnificent WC8------------One WEEK at a Time------------&------------------One Day at a Time

Salute and Stay Well

 

[DannyB0000]

90% profit over 3 days, will buy back in at the next dip. I expect profit taking overnight. Am hoping LTM shares will convert to RIO shares should shareholders approve the merger.

 

[rcw1]

90% profit over 3 days, will buy back in at the next dip. I expect profit taking overnight. Am hoping LTM shares will convert to RIO shares should shareholders approve the merger.

yes @DannyB0000, interesting times ahead ... they say an all-cash deal ... RIO big enough to withstand/outlast the lithium price crash ...

Good fortune with it.

Not holding.

Kind regards
rcw1

 

[castawaykun]

yes @DannyB0000, interesting times ahead ... they say an all-cash deal ... RIO big enough to withstand/outlast the lithium price crash ...

Good fortune with it.

Not holding.

Kind regards
rcw1

I'm confused about this offer. Will I have the option to receive Rio shares, or am I destined to just wind up with their bottom feeding cash offer? If so, now that the board is recommending acceptance, am I better off just taking the money now and reinvesting in a more growth oriented play?

 

[Sean K]

I'm confused about this offer. Will I have the option to receive Rio shares, or am I destined to just wind up with their bottom feeding cash offer? If so, now that the board is recommending acceptance, am I better off just taking the money now and reinvesting in a more growth oriented play?

I think you just get the cash castaway. US$5.85 a share.

 

[DannyB0000]

I'm confused about this offer. Will I have the option to receive Rio shares, or am I destined to just wind up with their bottom feeding cash offer? If so, now that the board is recommending acceptance, am I better off just taking the money now and reinvesting in a more growth oriented play?

I don't think either Arcadium or Rio have released these details yet, apart from the fact that Rio has paid cash for Arcadium. The merger still has to be approved by their shareholders.

 

[castawaykun]

Thanks for the reply. As a long-term holder (purchased way back when my 'Galaxy' shares offered a capital raising at about 0.03 for much needed cash injection. Have been onboard through 3 different takeovers/mergers since, and certainly can't complain. That said, this Rio buyout represents a drop in value of my holding from 30K to 20K, so I am not very keen to see it approved. Looks like my small holding is going to be out-gunned by the major holders and board however, so now, unless the Aussie dollar plummets over the next 6 months, I can't see any benefit to holding out and waiting for the funds transfer. Anyone with any more ideas, feedback, would love to hear it. Thanks, Castawaykun