Australia's Allkem tops ASX 200 on merger with NYSE-listed Livent

Lake Resources NL

11/05/2023 02:29

** Shares of lithium miner Allkem Ltd  AKE.AX  jump as much
as 14.3% to A$14.76, after announcing a $10.6 billion merger
with U.S.-listed Livent Corporation  LTHM.N  on Wednesday
    ** Co after market close on May 10 said it will combine with
Livent to create the world's third-largest producer of lithium
    ** Stock posts sharpest gain since March 17, 2020 and top
gainer in benchmark ASX 200 index
    ** Macquarie says synergies from the merger are likely,
given overlap of operations in Argentina and Canada 
    ** Citi expects synergies from product mix, downstream
integration and re-rating on scale or diversification
    ** AKE hits its highest since Nov. 24, extend gains into
fifth straight session
    ** Gains in AKE boost other lithium stock on ASX, with
biggest gains in Lake Resources  LKE.AX , up ~16%, Core Lithium
 CXO.AX  up 1.4%
    ** AKE up ~15% this year as of last close


($1 = 1.4663 Australian dollars)

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))