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

Lake Resources NL

11/05/2023 04:45

(Updates with comments from Canaccord Genuity, share moves and
graphic)
    ** Shares of lithium miner Allkem Ltd  AKE.AX  jump as much
as 17.6% to A$15.18, 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 Feb 5, 2020; top gainer
in benchmark ASX 200 
    ** 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
        ** However, analysts at Canaccord Genuity view the deal
as a possible defensive move against the risk of an
opportunistic bid from a larger group
  
    ** AKE hits its highest level since Nov. 15, extends gains
into fifth straight session
    ** Gains in AKE boost other lithium stocks 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)

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Allkem Share Moves    https://tmsnrt.rs/3BgdkIB
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 (Reporting by Savyata Mishra and Navya Miital in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))