Rio Tinto has finalized a definitive agreement to acquire US-based Arcadium Lithium in an all-cash transaction valued at approximately $6.7 billion.
Under the terms of the deal, Rio Tinto’s indirect wholly owned subsidiary, Rio Tinto BM Subsidiary, will pay $5.85 per share in cash to Arcadium, representing a significant premium over the company’s recent trading price. The acquisition is expected to enhance Rio Tinto’s position as a global leader in energy transition commodities.
Arcadium currently has an annual production capacity of 75,000 tonnes of lithium carbonate equivalent, with plans to more than double this capacity by the end of 2028.
The company employs approximately 2,400 people across multiple countries, including Argentina, Australia, Canada, China, Japan, the UK, and the US.
Rio Tinto CEO Jakob Stausholm stated, “Acquiring Arcadium Lithium is a significant step forward in Rio Tinto’s long-term strategy, creating a world-class lithium business alongside our leading aluminium and copper operations to supply materials needed for the energy transition.
Arcadium Lithium is an outstanding business today, and we will leverage our scale, development capabilities, and financial strength to realize the full potential of its Tier 1 portfolio.”
This acquisition follows earlier discussions announced this week regarding the potential purchase of Arcadium Lithium.
Arcadium Lithium CEO Paul Graves commented, “We are confident that this is a compelling cash offer that reflects a full and fair long-term value for our business and mitigates our shareholders’ exposure to the execution of our development portfolio and market volatility.
Arcadium Lithium is a leading global lithium producer with the widest range of lithium chemical products and a world-class manufacturing network, supported by a broad technology portfolio and expertise across the lithium value chain.”
The transaction is subject to approval by Arcadium’s shareholders and regulatory authorities and is expected to close by mid-2025.
Once completed, the acquisition will integrate Arcadium’s lithium operations into Rio Tinto’s extensive portfolio, which includes commodities such as aluminium, copper, and high-grade iron ore.
