Albemarle's Chile country manager Ignacio Mehech shows an illustration of brines purification process to obtain lithium carbonate at their lithium plant placed on the Atacama salt flat, Chile, May 4, 2023.
REUTERS/Ivan Alvarado Acquire Licensing RightsMELBOURNE, Sept 4 (Reuters Breakingviews) - On the surface, offering a near-100% premium for an as yet unproductive lithium miner may seem over the top.
Dig down a bit, though, and U.S.-based Albemarle’s (ALB.N)A$6.6 billion($4.3 billion) sweetened all-cash offer on Monday for Australian rival Liontown Resources (LTR.AX) has financial merit, as well as offering each side a handy hedge.
A plan by Chile’s government to nationalise lithium resources adds more reason for the deal.
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Persons:
Ignacio Mehech, Ivan Alvarado, Albemarle, Kathleen, Antony Currie, Pernod Ricard, Una Galani, Thomas Shum
Organizations:
REUTERS, Rights, Reuters, Liontown Resources, Alpha, X, Thomson
Locations:
Chile, U.S, Western Australia, EBITDA, Albemarle