Rio Tinto has finalised its $US6.7 billion ($10.5 billion) acquisition of Arcadium Lithium, positioning the company as a leading lithium supplier.
Following approval from the Royal Court of Jersey, Rio Tinto is now the parent company of Arcadium, which will be renamed to Rio Tinto Lithium. Arcadium has been delisted from the ASX and New York Stock Exchange.
Backed by one of the world’s largest lithium resource bases, Rio Tinto Lithium aims to grow the capacity of its Tier 1 assets to over 200,000 tonnes of lithium carbonate equivalent per annum by 2028.
“Today we are delighted to welcome the employees of Arcadium to Rio Tinto,” Rio Tinto chief executive officer Jakob Stausholm said.
“Together, we are accelerating our efforts to source, mine and produce minerals needed for the energy transition. By combining Rio Tinto’s scale, financial strength, operational and project development experience with Arcadium’s Tier 1 assets, technical and commercial capabilities, we are creating a world-class lithium business which sits alongside our leading iron ore, aluminium and copper operations.
“We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on respecting local communities, minimising environmental impacts and delivering value for shareholders and other stakeholders.”
Rio Tinto is now the world’s third largest lithium supplier, only behind Albemarle and Sociedad Química y Minera de Chile S.A. (SQM).
First announced in October 2024, the transaction saw Rio acquire Arcadium in an all-cash transaction for $US5.85 per share, representing a 90 per cent premium on Arcadium’s October 4 2024 closing price of $US3.08 per share.
The deal had synchronicities that elicited the transaction.
Rio Tinto and Arcadium operate in similar jurisdictions, including Argentina where Rio Tinto is developing its Rincon lithium project – which received approval for a $2.5 billion expansion in December 2024 – and where Arcadium was operating its Salar Del Hombre Muerto, Olaroz, Sal de Vida and Cauchari lithium assets.
Rio Tinto will also leverage Arcadium’s multinational upstream capabilities and downstream processing offerings.
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