Landmark Decision: Allkem Shareholders Give Nod to $10.6 Billion Livent Lithium Merger

In a momentous decision, shareholders of the Australian lithium producer Allkem voted affirmatively on Tuesday, endorsing a groundbreaking $10.6 billion merger proposition from the renowned U.S. chemical company Livent. If this all-encompassing, all-stock transaction successfully materializes, it is poised to mark the genesis of one of the most formidable lithium conglomerates on a global scale, christened as Arcadium Lithium. The foundational agreement outlining the trajectory of this merger between Allkem and Livent was originally devised in May of the current year. Allkem is a unique company specializing in lithium chemicals and boasts a worldwide collection of diverse and superior-grade lithium-based products.

In expressing his positive outlook regarding the potential merger, Livent's President and CEO, Paul Graves, stated, "The amalgamation will boost our scale, diversify our product offerings, expand our geographic reach, and improve our execution abilities to cater to our customers' escalating need for lithium chemicals."

The nascent entity, Arcadium Lithium, is scheduled to wield expansive land holdings across pivotal lithium-producing nations, spanning Australia, Argentina, and Canada. Going beyond mere extraction, Arcadium Lithium is positioned to actively engage in operations that traverse the entire lithium supply chain – from the extraction of this critical mineral to the delivery of refined products to manufacturers of batteries.

Against the backdrop of the tumultuous landscape in the lithium industry over the past year, Peter Coleman, Chairman of Allkem, shared reflections during the shareholder meeting where pivotal votes were cast. The terms of the merger stipulate that each Allkem investor will receive one share in Arcadium Lithium, mirroring their existing holdings, thereby collectively amassing a 56% ownership stake in the nascent conglomerate. Conversely, Livent shareholders are slated to receive 2.406 shares for each existing share, accompanied by strategic plans to appoint Paul Graves as the head of Arcadium Lithium.

The decision to actively pursue this merger was initially championed in a report from the financial advisory entity Kroll, a recommendation subsequently echoed by other major proxy advisory firms. Contingent upon the successful acquisition of all requisite regulatory and shareholder approvals, the amalgamated entity, Arcadium Lithium, is strategically positioned to ascend to the ranks of the third-largest lithium producer globally. This would align it with industry titans such as Albemarle in the United States and Chile’s SQM. The consummation of this merger not only symbolizes a significant milestone in the dynamic evolution of the lithium sector but also firmly establishes Arcadium Lithium as a formidable player endowed with considerable global influence.