US chemical manufacturing company Albemarle has improved its takeover bid for Liontown Resources to $4.3bn (A$6.6bn).

According to the new proposal, Albemarle will acquire all of the shares of Liontown for A$3 apiece. The revised proposal is subject to several conditions before it becomes binding.

The board of Liontown has recommended the proposal and stated that it will pave the way to enter into a mutually acceptable deed.

It accepted the revised proposal after careful consideration and has agreed to grant Albemarle time to conduct due diligence before moving forward with a binding proposal.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Any such proposals are also further subject to approval from its shareholders along with regulatory approvals.

Albemarle stated that if the transaction is successful it can enhance its energy storage business and build on its resource base.

The company also plans to expand its position in Australia, where it already has expertise in spodumene resources and lithium conversion facilities at Greenbushes, Wodgina and Kemerton.

In March 2023, Albemarle submitted a $1.58 buyout bid, which was rejected by the company. Later in the same month, the offer price was increased to $1.661 per share.

Liontown stated that the proposal comes at a time that coincides with the recent softness in companies exposed to the lithium sector and the pre-production status of its Kathleen Valley project in Western Australia.