Arcadium Lithium stock soars as report of Rio Tinto acquisition bid is confirmed

By Mike Murphy

Global mining giant Rio Tinto PLC has expressed interest in buying Arcadium Lithium PLC, both companies confirmed Sunday.

Separately, the companies both said Rio Tinto had made an approach to Arcadium regarding a potential acquisition. No price or terms of a deal were disclosed. Both said the offer is non-binding and there is no certainty that a deal will be completed, and both said they would not comment further until an update is appropriate.

Reuters first reported the talks Friday afternoon, sending Arcadium's U.S.-traded shares surging 35% after hours Friday.

If the deal is completed, Rio Tinto would become one of the world's largest producers of lithium, a metal that is crucial in batteries for electric vehicles and consumer electronics.

Philadelphia-based Arcadium (ALTM) had a market cap of $3.31 billion as of Friday's close, and its Australian-traded shares AU:LTM shot 44% higher in early Monday trading. Arcadium began U.S. trading in January, and those shares are down about 55% year to date.

Rio Tinto's Australian shares (AU:RIO) fell about 1.5% on Monday in Sydney trading. Its U.S.-traded shares (RIO) are up about 12% year to date.

-Mike Murphy

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10-06-24 2255ET

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