Lithium Miners Ink $3 Billion Merger as Demand for Electric Vehicles Booms

  • 📰 WSJ
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 63%

United States News News

United States United States Latest News,United States United States Headlines

Orocobre agreed to buy rival Australian miner Galaxy Resources in an all-stock deal that would create one of the world’s biggest producers of lithium, a commodity used in batteries for electric vehicles and other high-tech products

SYDNEY— Orocobre Ltd. agreed to buy rival Australian miner Galaxy Resources Ltd. in an all-stock deal that would create a $3 billion miner and one of the world’s biggest producers of lithium, a commodity used in batteries for electric vehicles and other high-tech products.

The deal comes at a time when lithium prices are climbing because of concerns about shortages of the commodity and a bigger-than-anticipated electric-vehicle boom. Orocobre runs the Olaroz lithium operation in northern Argentina, while Galaxy runs the Mt. Cattlin mine in Australia and has projects under development in Argentina and Canada.

Based on the companies’ closing share prices on Friday, a combined company would have a market value of 3.96 billion Australian dollars, equivalent to $3.06 billion. If the deal consummates, the new miner would be the fifth-largest global lithium miner, the companies said. Orocobre will acquire all of the shares in Galaxy, whose shareholders will receive 0.569 Orocobre shares for each of their own stock. Orocobre shareholders will own 54.2% of the combined group and Galaxy shareholders will own the remaining 45.8%.

Galaxy Chairman Martin Rowley will become nonexecutive chairman of the combined group, with Orocobre Chief Executive Martín Pérez de Solay becoming CEO.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to him Blaketeddy56 Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success⚖️

Dear friends. I'm very ashamed to address it, but my child's life is at stake. If you can help repost my tweet or donate whoever can, go to my page and read my story. Thank you. Sorry to bother you

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 98. in US

United States United States Latest News, United States United States Headlines