Deals

Lithium Giant Albemarle Spurned in $3.7 Billion Liontown Bid

  • US-based producer is seeking growth to meet future demand
  • Liontown shares surge to record high after announcement
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Albemarle Corp., the world’s top lithium producer, has had its A$5.5 billion ($3.7 billion) cash offer for Liontown Resources Ltd rejected by the Australian developer, sending shares in the target up almost 70% and fueling expectations of wider consolidation.

The mining giant had offered to acquire all of Liontown’s equity at A$2.50 a share, its third bid in five months, the Perth-based company said Bloomberg Terminalon Tuesday. The proposal, a 64% premium to Monday’s closing price, comes after a slump in lithium prices from last year’s record and a corresponding drop in Liontown’s share price.