Rio Tinto Confirms Takeover Interest in Arcadium Lithium

Anglo-Australian miner Rio Tinto Ltd has engaged with U.S.-listed Arcadium Lithium PLC regarding a possible takeover, as confirmed by both parties through separate statements, though no financial specifics were disclosed.

Recent reports indicated that Rio Tinto was contemplating a takeover that might value Arcadium between $4 billion and $6 billion, or possibly even more. As of last Friday, Arcadium’s market capitalization stood at approximately $3 billion, with its shares seeing a significant increase of about 36% following these reports.

While Rio Tinto acknowledged the consideration of a takeover, it emphasized that the approach remains “non-binding” and there is no guarantee that a deal will be finalized.

This potential acquisition comes amid a broader trend where global metal producers are seeking to consolidate their lithium supplies, driven by the anticipated surge in demand for the metal due to its critical role in electric vehicles and the worldwide shift towards electrification in the coming decades.

If successful, this deal could position Rio Tinto as one of the largest lithium producers globally. Additionally, reports indicate that Arcadium’s shareholder, Blackwattle Investment Partners, believes any offer in the range of $4 billion to $6 billion would not adequately reflect Arcadium’s value.