The Rio Tinto Ltd. booth on the opening day of the Investing in African Mining Indaba in Cape Town, South Africa, on Monday, Feb. 6, 2023.
Dwayne Senior | Bloomberg | Getty Images
The world’s second-largest miner Rio Tinto said Wednesday it will acquire U.S. lithium producer Arcadium for $6.7 billion.
Rio Tinto said the deal would be an all-cash transaction for $5.85 per share, representing a premium of 90% to Arcadium’s Oct. 4 closing price of $3.08 per share. Arcadium Lithium’s market value currently stands at $3.31 billion, according to LSEG data.
News of the transaction confirms an announcement earlier this week that the two companies were in talks. If the deal goes through, Rio Tinto will become one of the largest suppliers of lithium, trailing only after Albemarle and SQM.
Rio Tinto CEO Jakob Stausholm said the purchase 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.”
This breaking news story is being updated.