LONDON (dpa-AFX) - Rio Tinto (RIO) Thursday has finalized its $6.7 billion acquisition of Arcadium Lithium, following court approval in Jersey. Arcadium Lithium will be rebranded as Rio Tinto Lithium, incorporating the Rincon lithium project. This move strengthens Rio Tinto's position as a leading supplier of energy transition materials and a major lithium producer, targeting over 200,000 tonnes of lithium carbonate equivalent or LCE annually by 2028.
The company anticipates significant EBITDA and cash flow growth through expanded production and complementary technologies. According to Rio Tinto CEO Jakob Stausholm, integrating Arcadium's Tier 1 assets with Rio Tinto's operational expertise creates a world-class lithium business alongside its iron ore, aluminum, and copper divisions. He emphasized the company's commitment to responsible resource development while delivering value to stakeholders.
Arcadium Lithium shareholders will receive $5.85 per share, with Rio Tinto funding the acquisition through an existing bridge loan, later to be refinanced with long-term debt. Following the transaction, Arcadium Lithium's shares and CHESS Depositary Receipts or CDIs will be delisted from the NYSE and ASX.
Thursday, RIO closed at $63.94, up 0.30%, and is currently trading after-hours at $64.22, up 0.44% on the NYSE.
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