Rio Tinto has completed the acquisition of US-based Arcadium Lithium for $6.7bn after the scheme of arrangement was sanctioned by the Royal Court of Jersey.
The acquisition follows the signing of a definitive agreement for the transaction in October 02024.
It positions Rio Tinto as the ultimate parent company of Arcadium Lithium, now renamed Rio Tinto Lithium.
The acquisition is set to propel Rio Tinto to the forefront of energy transition materials supply, establishing it as a major lithium producer, according to the company.
Rio Tinto Lithium aims to expand its Tier 1 asset capacity to more than 200,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE) by 2028.
The company anticipates substantial growth in earnings before interest, taxes, depreciation and amortisation (EBITDA) and operating cash flow, driven by the rising demand for lithium.
Arcadium Lithium shareholders will receive $5.85 per share in cash from Rio Tinto’s indirect, wholly owned subsidiary, Rio Tinto BM Subsidiary.
Rio Tinto is financing the acquisition through an existing bridge loan facility. The plan is to replace this with long-term debt financing.
Following the transaction’s completion, Arcadium Lithium’s shares and CHESS Depositary Receipts will be delisted from the New York Stock Exchange and Australian Securities Exchange, respectively.
Rio Tinto CEO Jakob Stausholm said: “By combining Rio Tinto’s scale, financial strength, operational and project development experience with Arcadium’s Tier 1 assets, technical and commercial capabilities, we are creating a world-class lithium business which sits alongside our leading iron ore, aluminium and copper operations.”
In addition to the acquisition, Rio Tinto announced an investment of $1.8bn in the Brockman Syncline 1 (BS 1) mine project to extend the life of the Brockman region in West Pilbara, Western Australia.
The project is set to begin construction this year and is expected to process up to 34 million tonnes of iron ore annually.
The BS1 is a satellite orebody mine development project, part of a series of replacement projects in the Pilbara region. It is scheduled to commence ore production in 2027.
