Australian Government Approves Allkem-Livent Merger, Boosting Livent’s Presence in Global Lithium Market
Shares of Allkem Limited (ASX:AKE) experienced a significant surge of over seven percent following the approval of its acquisition by Livent (NYSE:LTHM) Corporation by the Australian government. The approval sets the stage for Livent’s inclusion on the ASX as part of Arcadium Lithium, marking a key milestone for both companies. With the Argentinian government’s nod being the only pending approval, the merger process is nearing completion. At present, Allkem boasts a market capitalization of A$5.9 billion, while Livent stands at US$2.53 billion.
This merger is being viewed as a strategic move by Livent, which has ambitious plans to become a dominant force in the global lithium market. By integrating their shared assets in Argentina and Canada, the newly formed entity, Arcadium, aims to significantly bolster annual lithium production. The post-merger structure will see Allkem and Livent shareholders holding 56% and 44% stakes in Arcadia, respectively.
Highlighting the significance of the merger, the CEO of Allkem had previously emphasized the company’s ambitions to become a major international player with listings in both the US and Australia by May 2023. Despite experiencing a one-year return decrease of 35.19%, Australian stockbrokers have shown positive ratings for Allkem, with 16 ‘Buy’, 4 ‘Hold’, and one ‘Sell’ recommendations. Today, shares of Allkem traded at $9.27 at 12:39 pm AEDT.
In line with these developments, on November 15, 2023, Allkem provided detailed information to its shareholders through a Scheme Booklet about the impending merger with Livent Corporation. This comprehensive document includes an Independent Expert’s Report and outlines an indicative timetable, featuring key dates for voting eligibility and various approval stages leading up to the Scheme Implementation Date.
Shareholders have been advised to stay informed through updates that will be promptly communicated regarding any significant changes related to the transaction or its schedule. For any further assistance or inquiries, shareholders can reach out to designated representatives Andrew Barber and Phoebe Lee from Investor Relations & Media Enquiries Connect. It is crucial to note that this announcement is not intended for distribution within the United States, underscoring the global scale of this corporate transaction.
This approval by the Australian government marks a significant milestone for Allkem and Livent, paving the way for their merger and signaling Livent’s rise in the global lithium market. With the pending approval from the Argentinian government being the final step, the companies are now one step closer to realizing their strategic goals. The integration of shared assets and resources will undoubtedly strengthen their position as key players in the lithium industry, increasing annual production under the Arcadium brand. As the merger progresses, shareholders and industry experts eagerly await the future opportunities and growth prospects that lie ahead for Arcadia and its global operations.
