Australian lithium developer Liontown Resources has given the green light to a refreshed bid from Albemarle, the world’s largest lithium producer, Reuters reported.
The offer, now valued at A$6.6bn (US$4.3bn) is a 20% increase from Albemarle’s last proposal of A$2.50 per share made in late March 2023.
First production from Liontown’s Kathleen Valley project is expected in mid 2024.
Kathleen Valley is poised to produce 320,000 metric tonnes of lithium spodumene concentrate next year with the potential to ramp up to 700,000 by 2030.
Notably, Albemarle’s refreshed bid is the company’s fourth, following proposals of A$2.20 per share in October last year and A$2.35 earlier in March.
The deal is not yet finalised and remains subject to formalisation and shareholder approval.
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Liontown has allowed Albemarle access to its private records for due diligence.
According to Reuters, Albemarle aims to close this significant buyout by mid 2024, reflecting growing interest in Australian projects as a key source of lithium supply.