RIO pays rich premium for Arcadium
Markets were all a twitter in early-October when Rio Tinto confirmed that it was in talks to buy Arcadium Lithium. Many numbers were bandied around in the market but there was widespread surprise when Arcadium eventually announced the takeover price of US$6.7bn or US$5.85 per share. Including Arcadium’s net debt of US$505m, that makes for an EV of US$7.2bn and an EV/resource tonne multiple of US$180/t LCE on Arcadium’s combined resource base. To put things simply…that’s quite a lot! Read on for more analysis...
Topics
Arcadium
Brine
Ganfeng Lithium
Hard rock
Latin Resources
Lithium
Lithium Argentina
M&A
multiples
Pilbara Minerals
Rio Tinto
Zijin Mining
