Rio Tinto confirms $9.95b Arcadium Lithium purchase

Rio Tinto (ASX: RIO) has confirmed the purchase of leading global lithium chemicals producer Arcadium Lithium (ASX: LTM) for $9.95b (US$6.7b).

The all-cash deal will see Arcadium shareholders receive $8.69 (US$5.85) for every share held.

The transaction will bring Arcadium Lithium’s world-class lithium business into Rio’s portfolio, adding onto Rio’s existing aluminium, copper and iron ore operations.

Rio chief executive Jakob Stausholm commented on the acquisition.

“Acquiring Arcadium Lithium is a significant step forward in Rio Tinto’s long-term strategy, creating a world-class lithium business alongside our leading aluminium and copper operations to supply materials needed for the energy transition,” he said.

“Arcadium Lithium is an outstanding business today and we will bring our scale, development capabilities and financial strength to realise the full potential of its Tier 1 portfolio.”

Arcadium Lithium chief executive Paul Graves says this is a compelling cash offer for the business.

Arcadium Lithium is a leading global lithium producer with the widest offering of lithium chemical products and a world-class manufacturing network, backed by a broad technology portfolio and expertise in all aspects of the lithium value chain,” he said.

“This agreement with Rio Tinto demonstrates the value in what we have built over many years at Arcadium Lithium and its predecessor companies, and we are excited that this transaction will give us the opportunity to accelerate and expand our strategy, for the benefit of our customers, our employees, and the communities in which we operate.”

The transaction is expected to close in mid-2025 and is subject to receipt of customary regulatory approvals, approval from Arcadium Lithium shareholders and other closing conditions.