Arcadium's Global Regulatory Clearances Pave Way for Rio Tinto's $6.7bn Acquisition
Deal News | Feb 14, 2025 | EIN
Rio Tinto has obtained all necessary regulatory approvals for its $6.7 billion acquisition of Arcadium Lithium, with the transaction expected to conclude in early March. The approvals span several key jurisdictions, including the US, UK, Australia, Canada, China, Japan, and South Korea. This acquisition is a strategic move by Rio Tinto as it aims to expand its presence in the lithium market, crucial for electric vehicle batteries and energy storage. The deal will enable Rio Tinto to leverage Arcadium's diverse lithium assets and production capabilities. Arcadium, under financial constraints, sees this acquisition as a catalyst for accelerated growth. The final procedural hurdle is the sanction hearing in Jersey, scheduled for March 5, with completion anticipated the following day.
Sectors
- Mining
- Energy Storage
- Manufacturing
Geography
- United States – The transaction required clearance from the Committee on Foreign Investment in this country, among others.
- Australia – Regulatory approval in Australia was necessary for the acquisition, indicating its relevance.
- Canada – Canada is involved due to regulatory approvals and Arcadium Lithium operations.
- China – Approval from Chinese authorities was part of the regulatory process.
- United Kingdom – Arcadium Lithium and Rio Tinto have significant operations here and required local regulatory clearances.
- Jersey – The final procedural step for the acquisition is scheduled in the Royal Court of Jersey.
Industry
- Mining – The acquisition involves Rio Tinto, a significant player in the mining industry, and Arcadium Lithium, which owns diversified lithium mining assets, making the mining sector central to this transaction.
- Energy Storage – This sector is relevant as the acquisition supports Rio Tinto's strategy focused on critical minerals like lithium, essential for electric vehicle batteries and energy storage.
- Manufacturing – Arcadium Lithium's involvement in lithium chemicals manufacturing makes this sector pertinent to the acquisition.
Financials
- $6.7 billion – The total value of the acquisition of Arcadium Lithium by Rio Tinto.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Rio Tinto | Bidding Company | Companies | A leading global mining company, acquiring Arcadium Lithium. |
| Arcadium Lithium | Target Company | Companies | A lithium mining and manufacturing company operating globally. |
| Committee on Foreign Investment in the United States | Regulatory Body | Government | Provided necessary investment screening approval for the acquisition. |