{"id":3459,"date":"2023-12-19T06:03:50","date_gmt":"2023-12-19T06:03:50","guid":{"rendered":"https:\/\/economicherald.net\/?p=3459"},"modified":"2023-12-19T06:03:50","modified_gmt":"2023-12-19T06:03:50","slug":"monsters-of-rock-allkem-shareholders-back-livent-merger-in-bid-to-create-lithium-growth-story","status":"publish","type":"post","link":"https:\/\/economicherald.net\/?p=3459","title":{"rendered":"Monsters of Rock: Allkem shareholders back Livent merger in bid to create lithium growth story"},"content":{"rendered":"

\u00a0<\/p>\n

Allkem shareholders have voted up Allkem\u2019s planned merger with America\u2019s Livent in a meeting in Perth today<\/strong>
\nThe deal is a bid to create what could become the world\u2019s third largest lithium producer from 2027<\/strong>
\nComes after a recent rebound in share prices after falling commodity prices have hit lithium stocks hard in the second half of 2023<\/strong><\/p>\n

\u00a0<\/p>\n

After months of agitations, including high-profile complaints from large institutional investors, the backing of proxies has secured support from Australian shareholders for Allkem\u2019s (ASX:AKE)<\/strong><\/a> mega lithium merger with America\u2019s Livent.<\/p>\n

The deal would see the company renamed Arcadium Lithium, pairing brine production assets in Argentina with Allkem\u2019s Mt Cattlin spodumene mine in WA and the companies\u2019 theoretically complementary development assets in Canada\u2019s James Bay lithium district.<\/p>\n

A scheme meeting today at Crown Perth brought few surprises with 72.07% of Allkem shareholder present and voting and 89.27% of votes cast in person or by proxy supporting the merger.<\/p>\n

Outgoing Allkem CEO Martin Perez de Solay, who will step aside in the merger for Livent\u2019s Paul Graves, said the combined company would have \u201cthe scale and expertise to meet the rapidly growing demand for lithium chemical products and the product flexibility required by customers while remaining committed to the delivery and execution of a significant growth pipeline.\u201d<\/p>\n

It promises to be, if lithium pricing, regulatory approvals and technical aspects allow, the third biggest lithium producer in the world behind Albemarle and SQM.<\/p>\n

There had been concerns heading into the vote that Allkem shareholders would be dudded by getting just 56% of the combined entity, which will be headquartered in Ireland and primarily listed in New York, despite bringing the bulk of the production.<\/p>\n

Independent expert Kroll, which said the \u201cmerger of equals\u201d was fair and reasonable, placed an underlying equity value of $5.337-6.446b on Allkem and $4.454-4.981b on Livent.<\/p>\n

\u00a0<\/p>\n

Are lithium prices finding a floor?<\/h2>\n

Both companies have fallen around 35% since the deal was announced over six months ago.<\/p>\n

That\u2019s basically down to a slide in lithium prices, which have come off faster than most analysts predicted as supply has outpaced demand from EV makers in China despite EV sales penetration lifting strongly in the key market.<\/p>\n

Responding to investors at the scheme vote today, Allkem chairman and former Woodside (ASX:WDS)<\/a> boss Peter Coleman said it looked like support was coming now for lithium prices.<\/p>\n

The market has turned suddenly optimistic in recent weeks after a months long sell off, with Allkem shares 18% higher over the last month and most of that in the past five trading days.<\/p>\n

\u201cYou\u2019ve seen the markets continue to change, particularly with respect to lithium pricing, and there\u2019s been other M&A activities in the marketplace that we\u2019ve continued to monitor very closely,\u201d he said.<\/p>\n

\u201cAnd I\u2019m pleased today to be standing in front of you and saying it looks like we\u2019ve found some support for lithium pricing, and it\u2019s been good to see the stock price start to move in a positive direction in the last week or so.\u201d<\/p>\n

Allkem expects to produce 22,000-26,000t of lithium carbonate and 210,000-230,000t of spodumene in FY24, but says a strong growth pipeline could see the combined Arcadium grow production to around 248,000t lithium carbonate equivalent from 2027, 163,000t of that from assets held currently by Allkem.<\/p>\n

The deal comes amid a flurry of merger and acquisition activity in lithium, including SQM and Gina Rinehart\u2019s Hancock Prospecting deciding to combine for a $3.70 a share bid for Azure Minerals (ASX:AZS)<\/a> today.<\/p>\n

READ: Ground Breakers: Azure lithium takeover alive again as SQM and Hancock join forces<\/a><\/p>\n

The materials sector lifted 0.74% after a solid trading day for iron ore producers. Liontown was the big winner, rising more than 11% to $1.63 after its top shareholder Hancock\u2019s Azure bid rose hopes of more M&A after Rinehart\u2019s intervention scuppered a $6.6 billion takeover from Albemarle earlier this year.<\/p>\n

\u00a0<\/p>\n

Allkem (ASX:AKE) share price today<\/h2>\n\n

<\/span>\u00a0
\n<\/span><\/p>\n

The post Monsters of Rock: Allkem shareholders back Livent merger in bid to create lithium growth story<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

\u00a0 Allkem shareholders have voted up Allkem\u2019s planned merger with America\u2019s Livent in a meeting in Perth today The deal is a bid to create [more…]<\/a><\/p>\n","protected":false},"author":0,"featured_media":3460,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-3459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\nMonsters of Rock: Allkem shareholders back Livent merger in bid to create lithium growth story - Economic Herald<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/economicherald.net\/?p=3459\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Monsters of Rock: Allkem shareholders back Livent merger in bid to create lithium growth story - Economic Herald\" \/>\n<meta property=\"og:description\" content=\"\u00a0 Allkem shareholders have voted up Allkem\u2019s planned merger with America\u2019s Livent in a meeting in Perth today The deal is a bid to create [more...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/economicherald.net\/?p=3459\" \/>\n<meta property=\"og:site_name\" content=\"Economic Herald\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-19T06:03:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/economicherald.net\/wp-content\/uploads\/2023\/12\/GettyImages-1326978045-e1702965541783-8qOv53.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"661\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=3459#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=3459\"},\"author\":{\"name\":\"\",\"@id\":\"\"},\"headline\":\"Monsters of Rock: Allkem shareholders back Livent merger in bid to create lithium growth story\",\"datePublished\":\"2023-12-19T06:03:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=3459\"},\"wordCount\":702,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=3459#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2023\\\/12\\\/GettyImages-1326978045-e1702965541783-8qOv53.jpeg\",\"articleSection\":[\"Finance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/economicherald.net\\\/?p=3459#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=3459\",\"url\":\"https:\\\/\\\/economicherald.net\\\/?p=3459\",\"name\":\"Monsters of Rock: Allkem shareholders back Livent merger in bid to create lithium growth story - Economic Herald\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=3459#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=3459#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2023\\\/12\\\/GettyImages-1326978045-e1702965541783-8qOv53.jpeg\",\"datePublished\":\"2023-12-19T06:03:50+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=3459#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/economicherald.net\\\/?p=3459\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=3459#primaryimage\",\"url\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2023\\\/12\\\/GettyImages-1326978045-e1702965541783-8qOv53.jpeg\",\"contentUrl\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2023\\\/12\\\/GettyImages-1326978045-e1702965541783-8qOv53.jpeg\",\"width\":1200,\"height\":661},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=3459#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/economicherald.net\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Monsters of Rock: Allkem shareholders back Livent merger in bid to create lithium growth story\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/#website\",\"url\":\"https:\\\/\\\/economicherald.net\\\/\",\"name\":\"Economic Herald\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/economicherald.net\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/#organization\",\"name\":\"Economic Herald\",\"url\":\"https:\\\/\\\/economicherald.net\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2023\\\/10\\\/cropped-cropped-economicheraldlogo-1.png\",\"contentUrl\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2023\\\/10\\\/cropped-cropped-economicheraldlogo-1.png\",\"width\":850,\"height\":760,\"caption\":\"Economic Herald\"},\"image\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/#\\\/schema\\\/logo\\\/image\\\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Monsters of Rock: Allkem shareholders back Livent merger in bid to create lithium growth story - Economic Herald","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/economicherald.net\/?p=3459","og_locale":"en_US","og_type":"article","og_title":"Monsters of Rock: Allkem shareholders back Livent merger in bid to create lithium growth story - Economic Herald","og_description":"\u00a0 Allkem shareholders have voted up Allkem\u2019s planned merger with America\u2019s Livent in a meeting in Perth today The deal is a bid to create [more...]","og_url":"https:\/\/economicherald.net\/?p=3459","og_site_name":"Economic Herald","article_published_time":"2023-12-19T06:03:50+00:00","og_image":[{"width":1200,"height":661,"url":"https:\/\/economicherald.net\/wp-content\/uploads\/2023\/12\/GettyImages-1326978045-e1702965541783-8qOv53.jpeg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/economicherald.net\/?p=3459#article","isPartOf":{"@id":"https:\/\/economicherald.net\/?p=3459"},"author":{"name":"","@id":""},"headline":"Monsters of Rock: Allkem shareholders back Livent merger in bid to create lithium growth story","datePublished":"2023-12-19T06:03:50+00:00","mainEntityOfPage":{"@id":"https:\/\/economicherald.net\/?p=3459"},"wordCount":702,"commentCount":0,"publisher":{"@id":"https:\/\/economicherald.net\/#organization"},"image":{"@id":"https:\/\/economicherald.net\/?p=3459#primaryimage"},"thumbnailUrl":"https:\/\/economicherald.net\/wp-content\/uploads\/2023\/12\/GettyImages-1326978045-e1702965541783-8qOv53.jpeg","articleSection":["Finance"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/economicherald.net\/?p=3459#respond"]}]},{"@type":"WebPage","@id":"https:\/\/economicherald.net\/?p=3459","url":"https:\/\/economicherald.net\/?p=3459","name":"Monsters of Rock: Allkem shareholders back Livent merger in bid to create lithium growth story - Economic Herald","isPartOf":{"@id":"https:\/\/economicherald.net\/#website"},"primaryImageOfPage":{"@id":"https:\/\/economicherald.net\/?p=3459#primaryimage"},"image":{"@id":"https:\/\/economicherald.net\/?p=3459#primaryimage"},"thumbnailUrl":"https:\/\/economicherald.net\/wp-content\/uploads\/2023\/12\/GettyImages-1326978045-e1702965541783-8qOv53.jpeg","datePublished":"2023-12-19T06:03:50+00:00","breadcrumb":{"@id":"https:\/\/economicherald.net\/?p=3459#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/economicherald.net\/?p=3459"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/economicherald.net\/?p=3459#primaryimage","url":"https:\/\/economicherald.net\/wp-content\/uploads\/2023\/12\/GettyImages-1326978045-e1702965541783-8qOv53.jpeg","contentUrl":"https:\/\/economicherald.net\/wp-content\/uploads\/2023\/12\/GettyImages-1326978045-e1702965541783-8qOv53.jpeg","width":1200,"height":661},{"@type":"BreadcrumbList","@id":"https:\/\/economicherald.net\/?p=3459#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/economicherald.net\/"},{"@type":"ListItem","position":2,"name":"Monsters of Rock: Allkem shareholders back Livent merger in bid to create lithium growth story"}]},{"@type":"WebSite","@id":"https:\/\/economicherald.net\/#website","url":"https:\/\/economicherald.net\/","name":"Economic Herald","description":"","publisher":{"@id":"https:\/\/economicherald.net\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/economicherald.net\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/economicherald.net\/#organization","name":"Economic Herald","url":"https:\/\/economicherald.net\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/economicherald.net\/#\/schema\/logo\/image\/","url":"https:\/\/economicherald.net\/wp-content\/uploads\/2023\/10\/cropped-cropped-economicheraldlogo-1.png","contentUrl":"https:\/\/economicherald.net\/wp-content\/uploads\/2023\/10\/cropped-cropped-economicheraldlogo-1.png","width":850,"height":760,"caption":"Economic Herald"},"image":{"@id":"https:\/\/economicherald.net\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/posts\/3459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3459"}],"version-history":[{"count":0,"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/posts\/3459\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/media\/3460"}],"wp:attachment":[{"href":"https:\/\/economicherald.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}