Arcadium Lithium announces cash acquisition by Rio Tinto

Arcadium Lithium plc (NYSE:ALTM), an industrial chemical company with a market capitalization of $5.54 billion, has notified shareholders of a significant development in its acquisition by Rio Tinto (NYSE:RIO) Western Holdings Limited. The transaction, which was previously disclosed on October 9, 2024, is set to proceed under a scheme of arrangement as per the Companies (Jersey) Law 1991.

On Thursday, Arcadium issued an official notice to holders of its CHESS depositary interests (CDIs) traded on the ASX, detailing the cash acquisition agreement. Per the terms, each ordinary share of Arcadium Lithium, including those represented by CDIs, will be transferred to the buyer in exchange for $5.85 per share in cash, without interest. According to InvestingPro data, the stock is currently trading at $5.83, near its 52-week high of $5.84, reflecting market confidence in the deal’s completion.

This acquisition marks a notable event for shareholders, as it represents a cash-out opportunity at the stipulated price per share. The transaction is a result of a formal agreement between Arcadium and Rio Tinto, which aims to transfer all outstanding shares of Arcadium to the buyer or an affiliate designated by the buyer.

The financial implications for shareholders are clear: upon the effective time of the scheme, shareholders will receive a cash payment in lieu of their shares. This event is a culmination of a process that began with the initial announcement last year and has now reached a critical stage of execution. The deal comes after Arcadium demonstrated strong revenue growth of 14.2% in the last twelve months, generating over $1 billion in revenue. InvestingPro subscribers can access 8 additional key insights about Arcadium’s financial health and valuation metrics in the comprehensive Pro Research Report.

Arcadium’s business and operations have been under the industrial inorganic chemicals sector, with its corporate affairs being conducted from its principal executive offices located in Philadelphia, PA, United States, and Shannon, Co. Clare, Ireland. The company has maintained a solid financial position with a current ratio of 1.09 and an Altman Z-Score of 6.37, indicating strong financial health.

The company has emphasized that the forward-looking statements in the notice are based on current expectations and assumptions, which are subject to risks and uncertainties that could cause actual results to differ materially. These risks are outlined in Arcadium’s 2024 Form 10-K filed with the SEC on February 27, 2025, and other public statements.

Investors and stakeholders are advised to review the details provided in the notice letter attached to the SEC filing. This development is a significant step in the acquisition process, and the completion of the transaction will likely have substantial effects on the company’s stock and ownership structure.

The information in this article is based on a press release statement and an 8-K filing with the Securities and Exchange Commission.

In other recent news, Arcadium Lithium has announced its acquisition by Rio Tinto, with shareholders set to receive $5.85 in cash per share. This acquisition, initially announced on October 9, 2024, is valued at $6.7 billion and will position Rio Tinto as the world’s third-largest lithium miner. The Committee on Foreign Investment in the United States (CFIUS) has cleared the deal, indicating no unresolved national security issues, with merger control clearance also received in several key jurisdictions, including Australia, Canada, and China. However, the acquisition still awaits further investment screening approvals in Australia, Canada, and Italy. Meanwhile, Arcadium Lithium has guaranteed Livent (NYSE:DE000SH0TLQ3=TBEA) Corporation’s 4.125% Convertible Senior Notes due in 2025, securing Livent’s financial commitments. Arcadium’s shareholders have approved the merger, though the company faces legal challenges from some shareholders alleging misrepresentation and negligence. The acquisition will allow Rio Tinto access to Arcadium’s lithium resources and its customer base, which includes major automotive manufacturers.

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