SYDNEY: Rio Tinto Plc, the world’s second largest miner, confirmed it has made a non-binding takeover approach for Arcadium Lithium Plc.
Rio said there was no certainty that any transaction will be agreed with the US miner, in a statement yesterday.
Arcadium, which is valued at around US$3.3bil, confirmed it had been approached in a separate statement. The companies didn’t provide any financial details.
Lithium stocks have languished since the start of the year after prices of the key battery metal plummeted amid an oversupply and lull in demand from electric vehicle makers.
Arcadium has underperformed its peers, which has been fuelling speculation of a takeover for some months.
Australian-listed depository receipts for Arcadium jumped as much as 50% in early trading, the most since listing in December. The move is likely exacerbated by thin trading volumes, with Sydney closed for a holiday yesterday. — Bloomberg
