Energy
Rio Tinto Expands Lithium Bet With Biggest Deal Since 2007
- Stausholm defends 90% premium as a ‘full and fair’ price
- The $6.7 billion deal is largest since ill-fated Alcan buy
This article is for subscribers only.
Rio Tinto Group has agreed to buy Arcadium Lithium Plc in an all-cash deal valuing the US-listed miner at $6.7 billion, expanding its grip on the battery metal and stepping back into the M&A fray with its biggest deal in 17 years.
Rio will pay $5.85 per Arcadium share, a 90% premium to the target’s closing price on Oct. 4 — before Rio first confirmed that it had made an approach. Arcadium jumped as much as 31% to $5.56 in early New York trading on Wednesday.