Rio Tinto (ASX:RIO) Completes $6.7 Billion Acquisition of Arcadium Lithium
Acquisition Details
Rio Tinto has completed its acquisition of Arcadium Lithium plc for $6.7 billion, following the sanctioning of the Scheme of Arrangement by the Royal Court of Jersey. Arcadium Lithium is now part of Rio Tinto as Rio Tinto Lithium, including the Rincon lithium project. The transaction involves a cash consideration of $5.85 per Arcadium Lithium share and will see Arcadium’s shares delisted from the NYSE and ASX.
Future Outlook
The acquisition positions Rio Tinto as a global leader in energy transition materials and a major lithium producer, boasting one of the world’s largest lithium resource bases. Rio Tinto Lithium aims to grow its capacity to over 200,000 tonnes per year of lithium carbonate equivalent by 2028, with projections for significantly higher EBITDA and operating cash flow in the coming years.
Executive Comments
CEO Jakob Stausholm stated, “Today we are delighted to welcome the employees of Arcadium to Rio Tinto. Together, we are accelerating our efforts to source, mine and produce minerals needed for the energy transition. By combining Rio Tinto’s scale, financial strength, operational and project development experience with Arcadium’s Tier 1 assets, technical and commercial capabilities, we are creating a world-class lithium business which sits alongside our leading iron ore, aluminium and copper operations. We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on respecting local communities, minimising environmental impacts and delivering value for shareholders and other stakeholders.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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