Rio Tinto to Acquire Arcadium for US$6.7 Billion in Major Lithium Push

In a landmark move, Rio Tinto ( ASX:RIO,NYSE:RIO,LSE:RIO) has sealed an all-cash deal to acquire US-based Arcadium Lithium (NYSE:ALTM,ASX:LTM) for US$6.7 billion. If successful, the deal will catapult Rio Tinto to become the third-largest lithium producer worldwide.

Following rumors that both companies were in talks for a possible acquisition, Rio Tinto announced that it is going all-in on the multi-billion sale. The deal, which is expected to close in mid-2025 pending approval by Arcadium's shareholders, values Arcadium at US$5.85 per share, 90 percent higher than its October 4 closing price of US$3.08.

Arcadium was established earlier this year following a US$10.6 billion merger between lithium majors Allkem and Livent, forming a vertically integrated company with global lithium operations spanning hard-rock mining, lithium brine extraction and chemical processing.

The company’s broad resource base, with assets across Argentina, Australia, Canada and the United States, made the acquisition a highly attractive prospect for Rio Tinto, as the purchase now positions the company for strategic growth in the case of an anticipated price rebound.

Arcadium’s shares surged in price by more than 40 percent after the rumors started, triggering gains in other lithium-focused stocks. It moved even higher following confirmation of the acquisition, and the company closed at US$5.55 on October 9 — now up 80 percent compared to its October 4 close.

The deal has been unanimously approved by the boards of both companies.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.