CANBERRA – Shares of Allkem Limited (ASX:AKE) surged over seven percent after the Australian government greenlit its acquisition by Livent (NYSE:LTHM) Corporation, setting the stage for Livent's inclusion on the ASX as part of Arcadium Lithium. This move follows a series of approvals, with only the Argentinian government's nod pending to complete the merger process. As of now, Allkem boasts a market capitalization of A$5.9 billion, and Livent's stands at US$2.53 billion.
The merger is seen as a strategic step for Livent, with ambitions to ascend as a dominant force in the global lithium market. The integration of shared assets in Argentina and Canada is expected to bolster annual lithium production under the Arcadium brand. Post-merger, Allkem and Livent shareholders will hold 56% and 44% stakes in Arcadia, respectively.
Allkem CEO had previously underscored the merger's strategic importance in May 2023, aiming to elevate Allkem into a major international player with listings in both the US and Australia. Despite experiencing a one-year return decrease of 35.19%, Australian stockbrokers have largely favored Allkem with positive ratings: 16 'Buy', 4 'Hold', and one 'Sell'. Today, shares of Allkem traded at $9.27 at 12:39 pm AEDT.
In tandem with these developments, on Wednesday, November 15, 2023, Allkem disseminated detailed information to its shareholders about the impending merger with Livent Corporation through a Scheme Booklet. This comprehensive document includes an Independent Expert’s Report and outlines an indicative timetable highlighting critical dates such as eligibility for voting and various approval stages leading up to the Scheme Implementation Date.
Shareholders have been advised to stay informed through updates that will be promptly communicated regarding any significant changes related to the transaction or its schedule. For additional assistance or inquiries, shareholders can reach out to Investor Relations & Media Enquiries Connect through designated representatives Andrew Barber and Phoebe Lee. It is important to note that this announcement is not intended for distribution within the United States, emphasizing the global scope of this corporate transaction.
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