Receive our newsletter – data, insights and analysis delivered to you
  1. News
November 2, 2021

Lithium Americas makes $400m takeover offer for Millennial Lithium

Millennial considers the buyout offer from Lithium Americas as a ‘superior proposal’, compared to the previous bid from CATL.

Canada-based Lithium Americas has made an offer to acquire all of the outstanding shares of Millennial Lithium for nearly $400m.

According to the ‘unconditional offer’, Millennial Lithium shareholders will be entitled to receive $3.79 (C$4.70) for each share held, which will include Lithium Americas common shares and $0.00081 (C$0.001) in cash.

This would allow Millennial shareholders to hold a 9.9% interest in the Canadian mining firm.

In September 2021, Millennial Lithium received a $297m (C$377m) all-cash takeover offer from Contemporary Amperex Technology (CATL), an electric-vehicle battery manufacturer.

Millennial Lithium’s board of directors has now determined that the offer from Lithium Americas is a ‘superior proposal’, compared to that of CATL.

CATL has a timeline of 16 November to revise its takeover offer for Millennial Lithium in order to match the proposal from Lithium Americas.

Subject to certain conditions, Lithium Americas will reimburse a $20m termination fee to Millennial if the latter terminates the deal with CATL.

Lithium Americas president and CEO Jonathan Evans said: “In proximity to Caucharí-Olaroz, Millennial’s 100%-owned Pastos Grandes lithium brine project represents an attractive regional growth opportunity for Lithium Americas.

“As we bring Caucharí-Olaroz into production over the next year and continue to advance our Stage 2 expansion planning, the addition of this highly complementary lithium brine resource further enhances our long-term growth strategy in Argentina and leverages our technical and development expertise.”

Prior to CATL’s offer, Millennial Lithium received a takeover bid from Chinese lithium metals producer Ganfeng Lithium.

It offered a price of $2.9 (C$3.6) per share or around $284.8m (C$353m) in cash to acquire the firm.

However, Millennial terminated its arrangement with Ganfeng Lithium after receiving CATL’s non-binding proposal in September.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU