SYDNEY, Oct. 9 (Xinhua) -- Australian-British mining giant Rio Tinto announced on Wednesday it has struck a 6.7 billion U.S. dollar deal to buy the U.S.-based global lithium miner Arcadium Lithium.
Rio Tinto announced at the close of the market in Australia that directors of Arcadium Lithium have accepted its offer to pay 5.85 dollars for each share in the lithium producer in an all-cash deal.
Rio Tinto said the acquisition price represented a 90 percent premium to Arcadium's closing share price of 3.08 dollars on Friday.
It came two days after Rio Tinto confirmed it had made an approach to buy the U.S.-based lithium producer.
Rio Tinto Chief Executive Jakob Stausholm said in a statement that the company would use its financial firepower to accelerate project development at a time when Arcadium had been slowing projects.
"Acquiring Arcadium Lithium is a significant step forward in Rio Tinto's long-term strategy, creating a world-class lithium business alongside our leading aluminium and copper operations to supply materials needed for the energy transition," he said.
As one of the world's largest producers of copper and iron, Rio Tinto is moving into lithium with its Rincon project in Argentina scheduled to produce its first lithium from groundwater within the next 12 weeks according to the Australian Financial Review.
Arcadium's global operations, comprising approximately 2,400 employees, include facilities and projects in Argentina, Australia, Canada, China, Japan, the United Kingdom and the United States.
The acquisition would position Rio Tinto as the world's third largest lithium supplier, only behind the U.S.-based Albemarle and Chilean chemical company Sociedad Quimica y Minera de Chile S.A., according to the Australian Mining magazine. ■