Rio Tinto acquires Arcadium Lithium for $5.85 per share of $6.7B

Rio Tinto (RIO) and Arcadium Lithium (ALTM) announced a definitive agreement under which Rio Tinto will acquire Arcadium in an all-cash transaction for $5.85 per share. The transaction values Arcadium’s diluted share capital at approximately $6.7B. The transaction has been unanimously approved by both the Rio Tinto and Arcadium Lithium baords. The transaction, which will be implemented by way of a Jersey scheme of arrangement, is expected to close in mid-2025. Rio Tinto BM Subsidiary Limited, an indirect wholly owned subsidiary of Rio Tinto, will acquire the Arcadium Lithium shares. Rio said, “The transaction offers compelling value driven by accelerating volume growth in a rising market contributing to significantly higher EBITDA and free cash flow in the outer years, before anticipated synergies. Acquiring Arcadium is consistent with Rio Tinto’s disciplined approach to capital allocation and will unlock significant value for shareholders, underpinned by the financial strength that we will bring. Rio Tinto will maintain its strong balance sheet following the close of this transaction, in line with its Single A credit rating, as well as its long track record of shareholder returns. Rio Tinto expects Arcadium’s projected growth capital expenditure to represent approximately 5% of Rio Tinto’s group capital expenditure of up to $10 billion across 2025 and 2026.”