Investing.com – Arcadium Lithium shareholders have given the green light to a $6.7 billion sale to Australian mining heavyweight Rio Tinto (NYSE:), the company announced Monday.
The news was met with positivity in the stock market, with Arcadium shares rising more than 2% in after-hours trading.
But the path to the deal is not without obstacles. Arcadium is currently dealing with legal challenges from a section of its shareholders.
These shareholders have filed lawsuits against the company, accusing it of misrepresentation, concealment, and negligence in connection with the acquisition deal. This information was disclosed by Arcadium in a regulatory filing earlier this month.
Earlier in the year, Rio Tinto announced its intention to acquire Arcadium at a price of $5.85 per share, which was paid in cash. This purchase price represents a roughly 90% premium to Arcadium's closing stock price on October 4, the day Reuters first reported the potential deal.
The acquisition will give Rio Tinto access to Arcadium's lithium mines, processing facilities and deposits located in Argentina, Australia, Canada and the United States.
In addition, Rio Tinto will also inherit Arcadium's customer base, which includes major automakers such as Tesla (NASDAQ:), BMW (ETR:), and General Motors (NYSE:).
““We are confident that this transaction will provide future benefit to our customers, employees and the communities in which we operate, and I am excited about the path that lies ahead,” Paul Greaves, Arcadium Lithium’s president and CEO, said in a statement.
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