Rio Tinto Completes $6.7 Billion Acquisition of Arcadium Lithium

On March 5, the Royal Court of Jersey approved a scheme of arrangement, allowing Rio Tinto Group to complete its acquisition of Arcadium Lithium for $6.7 billion. Rio Tinto Group is now the ultimate parent of Arcadium Lithium, which will become Rio Tinto Lithium and will include the Rincon Lithium Project.

The acquisition makes Rio Tinto a global leader in the supply of energy transition materials and a major lithium producer with one of the world's largest lithium resource bases. Rio Tinto Lithium aims to increase the production capacity of its Tier 1 assets to more than 200,000 tonnes of lithium carbonate equivalent (LCE) per year by 2028. Complementary technologies and geographic advantages offer attractive value, driven by accelerated production growth in emerging markets, with EBITDA and operating cash flow expected to increase significantly in the coming years.

Rio Tinto CEO Jakob Stausholm said: "Together with Arcadium, we will accelerate our pace to source, mine and produce the minerals needed for the energy transition. By combining Rio Tinto's scale, financial strength, operational and project development experience with Arcadium's tier-one assets, technology and commercial capabilities, we are creating a world-class lithium business to sit alongside our leading iron ore, aluminium and copper businesses. We believe we are well-positioned to deliver the materials needed for the energy transition while remaining focused on respecting local communities, minimising environmental impact and creating value for shareholders and other stakeholders."

Arcadium Lithium shareholders will receive a total cash consideration of $5.85 per share on the record date of the plan. Rio Tinto will finance the acquisition using its existing bridge facility, which it intends to replace with long-term debt financing.
With the completion of the transaction, Arcadium Lithium's shares and CHESS depositary receipts (CDIs) will be delisted from the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX), respectively.