Arcadium Lithium Receives CFIUS Clearance for Proposed Acquisition by Rio Tinto

Rhea-AI Summary

Arcadium Lithium (NYSE: ALTM) announced that the Committee on Foreign Investment in the United States (CFIUS) has cleared its proposed acquisition by Rio Tinto, finding no unresolved national security concerns. The deal, initially announced on October 9, 2024, has already received merger control clearance in multiple jurisdictions including Australia, Canada, China, Japan, South Korea, the United Kingdom, and the United States. Investment screening approval has been obtained in the UK.

The transaction still requires investment screening approvals in Australia, Canada, and Italy, along with other customary closing conditions. Arcadium Lithium anticipates the proposed transaction will close before mid-2025.

Positive

• CFIUS clearance removes major regulatory hurdle for acquisition
• Merger control clearances already obtained in 7 major jurisdictions
• Transaction on track to close before mid-2025

Negative

• Still pending investment screening approvals in 3 countries
• Closing timeline extends several months into 2025

Insights

Legal Expert

The CFIUS clearance marks a crucial regulatory milestone for Rio Tinto's proposed acquisition of Arcadium Lithium. This decision removes a significant regulatory hurdle, particularly given the strategic importance of lithium in the current geopolitical landscape. The clearance from multiple major jurisdictions including Australia, Canada, China, Japan, South Korea, the UK and the US demonstrates strong regulatory momentum. However, the remaining investment screening approvals from Australia, Canada and Italy still present potential execution risks.

The mid-2025 timeline for deal completion appears realistic considering the remaining regulatory requirements. The transaction's progression through various international regulatory frameworks showcases the complex nature of cross-border M&A in critical mineral sectors. The absence of national security concerns from CFIUS is particularly noteworthy given increasing scrutiny of foreign investments in critical minerals and battery materials.

Mining Industry Analyst

Rio Tinto's strategic move to acquire Arcadium Lithium represents a significant consolidation in the lithium sector, positioning Rio Tinto to become a major player in the battery materials supply chain. The timing of this acquisition aligns with the growing demand for lithium driven by electric vehicle adoption and energy storage systems. The regulatory clearances from key markets, particularly China - the world's largest lithium consumer - indicate strong market acceptance of this consolidation.

For investors, this regulatory progress suggests the deal is likely to proceed, potentially creating one of the largest integrated lithium operations globally. The transaction would give Rio Tinto significant exposure to lithium assets across multiple jurisdictions, diversifying geopolitical risk and strengthening its position in the critical minerals supply chain. The remaining approvals, while important, are unlikely to present major obstacles given the precedent set by other jurisdictions.

PHILADELPHIA and PERTH, Australia, Jan. 8, 2025 /PRNewswire/ -- Arcadium Lithium plc (NYSE: ALTM, ASX: LTM, "Arcadium Lithium"), a leading global lithium chemicals producer, announced that the Committee on Foreign Investment in the United States (CFIUS) has concluded its review of the proposed acquisition of Arcadium Lithium by Rio Tinto (previously announced on October 9, 2024) and determined that there are no unresolved national security concerns. 

As of this release, merger control clearance has been satisfied or waived in Australia, Canada, China, Japan, South Korea, the United Kingdom and the United States (Hart-Scott-Rodino Antitrust Improvements Act of 1976). Additionally, investment screening approval has been satisfied in the United Kingdom.

The transaction remains subject to investment screening approvals in Australia, Canada and Italy, as well as other customary closing conditions.

Arcadium Lithium expects the proposed transaction to close before mid-2025.

For more information, please visit: https://ir.arcadiumlithium.com.

Arcadium Lithium Contacts

Investors: 
Daniel Rosen +1 215 299 6208
daniel.rosen@arcadiumlithium.com

Phoebe Lee +61 413 557 780
phoebe.lee@arcadiumlithium.com

Media:
Karen Vizental +54 9 114 414 4702
karen.vizental@arcadiumlithium.com

About Arcadium Lithium
Arcadium Lithium is a leading global lithium chemicals producer committed to safely and responsibly harnessing the power of lithium to improve people's lives and accelerate the transition to a clean energy future. We collaborate with our customers to drive innovation and power a more sustainable world in which lithium enables exciting possibilities for renewable energy, electric transportation and modern life. Arcadium Lithium is vertically integrated, with industry-leading capabilities across lithium extraction processes, including hard-rock mining, conventional brine extraction and direct lithium extraction (DLE), and in lithium chemicals manufacturing for high performance applications. We have operations around the world, with facilities and projects in Argentina, Australia, Canada, China, Japan, the United Kingdom and the United States. For more information, please visit us at www.ArcadiumLithium.com.

Important Information and Legal Disclaimer:
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this news release are forward-looking statements. In some cases, we have identified forward-looking statements by such words or phrases as "will likely result," "is confident that," "expect," "expects," "should," "could," "may," "will continue to," "believe," "believes," "anticipates," "predicts," "forecasts," "estimates," "projects," "potential," "intends" or similar expressions identifying "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative of those words and phrases. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for Arcadium Lithium based on currently available information. There are important factors that could cause Arcadium Lithium's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including the completion of the transaction on anticipated terms and timing, including obtaining required regulatory approvals, and the satisfaction of other conditions to the completion of the transaction; potential litigation relating to the transaction that could be instituted by or against Arcadium Lithium or its affiliates, directors or officers, including the effects of any outcomes related thereto; the risk that disruptions from the transaction will harm Arcadium Lithium's business, including current plans and operations; the ability of Arcadium Lithium to retain and hire key personnel; potential adverse reactions or changes to business or governmental relationships resulting from the announcement or completion of the transaction; certain restrictions during the pendency of the transaction that may impact Arcadium Lithium's ability to pursue certain business opportunities or strategic transactions; significant transaction costs associated with the transaction; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the occurrence of any event, change or other circumstance that could give rise to the termination of the transaction, including in circumstances requiring Arcadium Lithium to pay a termination fee or other expenses; competitive responses to the transaction; the supply and demand in the market for our products as well as pricing for lithium and high-performance lithium compounds; our ability to realize the anticipated benefits of the integration of the businesses of Livent and Allkem or of any future acquisitions; our ability to acquire or develop additional reserves that are economically viable; the existence, availability and profitability of mineral resources and mineral and ore reserves; the success of our production expansion efforts, research and development efforts and the development of our facilities; our ability to retain existing customers; the competition that we face in our business; the development and adoption of new battery technologies; additional funding or capital that may be required for our operations and expansion plans; political, financial and operational risks that our lithium extraction and production operations, particularly in Argentina, expose us to; physical and other risks that our operations and suppliers are subject to; our ability to satisfy customer qualification processes or customer or government quality standards; global economic conditions, including inflation, fluctuations in the price of energy and certain raw materials; the ability of our joint ventures, affiliated entities and contract manufacturers to operate according to their business plans and to fulfill their obligations; severe weather events and the effects of climate change; extensive and dynamic environmental and other laws and regulations; our ability to obtain and comply with required licenses, permits and other approvals; and other factors described under the caption entitled "Risk Factors" in Arcadium Lithium's 2023 Form 10-K filed with the SEC on February 29, 2024, as well as Arcadium Lithium's other SEC filings and public communications. Although Arcadium Lithium believes the expectations reflected in the forward-looking statements are reasonable, Arcadium Lithium cannot guarantee future results, level of activity, performance or achievements. Moreover, neither Arcadium Lithium nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Arcadium Lithium is under no duty to update any of these forward-looking statements after the date of this news release to conform its prior statements to actual results or revised expectations.

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SOURCE Arcadium Lithium PLC

FAQ

What is the status of CFIUS approval for Rio Tinto's acquisition of ALTM?

CFIUS has concluded its review and found no unresolved national security concerns for Rio Tinto's proposed acquisition of Arcadium Lithium (ALTM).

Which countries have approved Rio Tinto's acquisition of ALTM?

The acquisition has received merger control clearance in Australia, Canada, China, Japan, South Korea, the United Kingdom, and the United States.

When is Rio Tinto's acquisition of ALTM expected to close?

Arcadium Lithium expects the proposed transaction to close before mid-2025.

What remaining approvals does ALTM need for the Rio Tinto acquisition?

The transaction still requires investment screening approvals in Australia, Canada, and Italy, along with other customary closing conditions.