Investing.com– Anglo-Australian miner Rio Tinto Ltd (ASX:) had approached U.S.-listed Arcadium Lithium PLC (NYSE:) over a possible takeover, each events stated in separate statements on Monday with out presenting any monetary particulars.
Studies final week stated Rio was contemplating a takeover, which might worth Arcadium between $4 billion and $6 billion, and even increased. Arcadium’s market capitalization was round $3 billion on Friday, whereas its shares surged about 36% after the report.
Rio confirmed that it was contemplating a takeover, however famous that the strategy was “non-binding,” and that there was no certainty that any deal could be reached.
The potential deal comes as international steel producers rush to consolidate provides of lithium, with demand for the steel set to surge from use in electrical autos and a worldwide push in direction of electrification within the coming many years.
The deal might doubtlessly make Rio one of many world’s largest lithium producers.
Separate experiences confirmed Australian Arcadium shareholder Blackwattle Funding Companions stating that any supply between $4 billion and $6 billion would undervalue Arcadium.
