Arcadium Lithium Shares Soar as Rio’s Deal Wins US Security Approval

Shares of the dual-listed lithium producer Arcadium Lithium (AU:LTM) (ALTM) soared today as the U.S. authorities approved its proposed acquisition by Australian mining giant Rio Tinto (AU:RIO). The Committee on Foreign Investment in the United States (CFIUS) found no national security concerns with Rio Tinto’s proposed acquisition. Following the announcement, Arcadium shares on the ASX surged by 8%, while RIO gained 0.45%.

Based in Australia, Rio Tinto is engaged in mineral exploration, mining, and processing activities. Meanwhile, Arcadium Lithium is a dedicated lithium producer, formed through the merger of Allkem and Livent in January 2024.

Rio’s Arcadium Lithium Deal Passes US Review

According to CFIUS, the proposed acquisition has no outstanding national security issues. With this approval, the merger has now received approval from merger control regulations in Australia, Canada, China, Japan, South Korea, the United Kingdom, and the U.S. The approval of merger controls across multiple countries has further strengthened investor confidence in the deal.

The deal, initially announced in October 2024, outlines Rio Tinto’s acquisition of Arcadium through an all-cash transaction valued at $5.85 per share. The acquisition will integrate Arcadium’s top-tier lithium business into Rio Tinto’s portfolio. It deal will also position Rio as a global leader in energy transition materials, including aluminium, copper, high-grade iron ore, and lithium.

The transaction is still pending investment screening approvals in Australia, Canada, and Italy, along with other typical closing conditions. Post these approvals, the deal is expected to be completed by mid-2025.

Is Arcadium Lithium a Good Buy?

According to TipRanks, LTM stock has received a Hold rating based on three Hold recommendations. The Arcadium Lithium share price forecast is AU$8.63, which is 2% above the current trading level.

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