Livent to merge with Australian lithium miner Allkem in $10 billion deal

Shares in Livent (LTHM) , the U.S.-based chemical manufacturer, gave up most of their gains to trade up just 1% in premarket action Wednesday, after it agreed to a $10.6 billion merger with Allkem , an Australian lithium miner. Allkem said an all-stock merger of equals would create a "leading global integrated lithium chemicals producer." "Allkem and Livent, two global lithium chemicals companies, will combine their highly complementary range of assets, growth projects, and operating skills across extraction and processing under a vertically integrated business model with the scale and expertise to meet the rapidly growing demand for lithium chemical products," said Allkem in a statement. The Transaction is expected to close by the end of calendar year 2023, said Allkem and then Allkem shareholders will own approximately 56% and Livent shareholders will own approximately 44% of the new company.

-MarketWatch

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05-10-23 0549ET

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