Arcadium Lithium announced on Monday that its shareholders have overwhelmingly approved the $6.7 billion sale of the company to Australian mining giant Rio Tinto.
Approximately 98% of shareholders voted in favor of the transaction, which caused Arcadium’s stock to rise by about 7% in after-hours trading.
The deal, set to close in mid-2025, will elevate Rio Tinto to the position of the world’s third-largest lithium miner, following Albemarle and SQM.
Despite the approval, Arcadium Lithium is facing legal challenges from some shareholders. These investors have filed lawsuits, alleging misrepresentation, concealment, and negligence related to the takeover process, as disclosed in a regulatory filing earlier this month.
Under the terms of the deal, Rio Tinto will acquire Arcadium Lithium for $5.85 per share in cash, representing nearly a 90% premium over the stock’s closing price on October 4, the day Reuters first reported on the potential acquisition.
The acquisition will grant Rio Tinto access to Arcadium’s lithium mines, processing facilities, and deposits across Argentina, Australia, Canada, and the United States, as well as key customers such as Tesla, BMW, and General Motors.
