Allkem shareholders set to vote on Livent's $10.6 bln merger bid

Allkem

18/12/2023 20:00

By Scott Murdoch
       SYDNEY, Dec 19 (Reuters) - 
    Investors of Australian lithium producer Allkem  AKE.AX 
will vote on Tuesday whether to accept a $10.6 billion merger
offer from U.S. giant Livent  LTHM.N  that would create one of
the world's largest lithium companies.
    Livent last week said it had received all regulatory
approvals for the deal to proceed that will create a company
called Arcadium Lithium.
    Under the deal, Allkem shareholders will get one share in
Arcadium Lithium for each of their shares, and the company will
ultimately own 56% of the new firm.
    Livent shareholders will get 2.406 shares in the new firm
for each existing share and Livent CEO Paul Graves will take the
top job.
    The new company will be the world's third-biggest producer
of the key metal used in electric vehicle batteries, behind
U.S.-based Albemarle  ALB.N  and Chile's SQM  SQMA.SN .
    The transaction has been recommended by independent experts
in a report compiled by financial advisors Kroll. Major proxy
advisory firms have also recommended investors vote in favour of
the deal.
   Livent's Graves told Reuters in November the new company
would be keen to expand its existing asset base in Western
Australia's world-class lithium districts.

 (Reporting by Scott Murdoch in Sydney; Editing by Christopher
Cushing)
 ((Scott.Murdoch@thomsonreuters.com;))