The merged entity will be known as Arcadium Lithium, with Allkem and Livent shareholders anticipated to hold ownership stakes of approximately 56% and 44%, respectively
Livent and Allkem set to create a global lithium chemicals producer called Arcadium Lithium. (Credit: Shane McLendon on Unsplash)
Lithium chemicals companies Livent and Allkem are on the verge of wrapping up their previously announced merger of equals deal that values the combined entity at $10.6bn.
Having secured all necessary shareholder approvals since the deal’s announcement on 10 May 2023, Livent and Allkem anticipate closing the merger on 4 January 2024.
The combined entity will operate under the name Arcadium Lithium in which Allkem and Livent shareholders are expected to own stakes of around 56% and 44%, respectively.
Arcadium Lithium is set to hold a primary listing on the New York Stock Exchange (NYSE) and will maintain a foreign exempt listing on the Australian Securities Exchange (ASX) through the issuance of chess depositary interests (CDIs) to Allkem shareholders.
The Federal Court of Australia has also granted approval to the proposed scheme of arrangement, allowing Arcadium Lithium to acquire 100% of the shares in Allkem.
Livent president and CEO and future CEO of Arcadium Lithium Paul Graves said: “The strong support of Livent and Allkem shareholders for this transformational merger is a testament to the compelling value proposition of Arcadium Lithium.
“We look forward to closing the merger and pursuing the opportunities to create greater long-term, sustainable value for all of our stakeholders.”
Headquartered in the US, Livent manufactures a diverse array of lithium chemicals for applications such as energy storage and specialised uses, leveraging its advanced lithium processing technologies.
On the other hand, Allkem, with its corporate head office in Australia, contributes complementary expertise in conventional brine-based lithium extraction, hard rock mining, and lithium processing.
The merged entity will possess a substantial portfolio of cost-effective assets spread across crucial geographies, products, and customer bases.
Having assets strategically situated in Argentina and Canada in close proximity, Arcadium Lithium foresees realising significant cost synergies and savings in capital expenditures.
Furthermore, the merger between Livent and Allkem provides an opportunity for collaborative development and risk mitigation in connection with future expansion projects and operations, leading to additional benefits, in addition to other expected commercial synergies.
Last week, Livent revealed making an investment in ILiAD Technologies to bolster its position in direct lithium extraction production processes. ILiAD Technologies aims to commercialize and advance the development of the ILiAD (integrated lithium adsorption desorption) technology platform.