In a significant development, lithium giant Albemarle Corp . has withdrawn from its planned A$6.6 billion ($4.2 billion) takeover of Liontown Resources Ltd. This decision came after Australia’s richest woman, Gina Rinehart, amassed a substantial stake in Liontown, effectively blocking one of the largest battery-metals deals to date.
Albemarle had been keen to secure additional lithium supply and had been pursuing Liontown for several months, primarily eyeing its Kathleen Valley project, one of Australia’s most promising lithium deposits. In September, Liontown had accepted Albemarle’s “best and final” offer of A$3 per share, representing nearly a 100% premium to the share price before Albemarle’s interest became public in March.
However, over the past few weeks, Albemarle had to contend with the growing influence of Gina Rinehart, a formidable mining tycoon. Her company, Hancock Prospecting Pty., progressively acquired a 19.9% stake in Liontown, ultimately becoming the largest investor, with the potential to block a shareholder vote on the deal.
Albemarle has now communicated to Liontown that it will not proceed with the acquisition due to the “growing complexities associated with executing the transaction,” as stated by the Australian miner.
This situation marks Rinehart’s most significant foray into the lithium sector, as she had previously amassed her wealth in Western Australia’s iron ore mines during China’s infrastructure boom. As the outlook for the steel industry weakens, the demand for battery metals is on the rise, driven by the global shift towards cleaner energy sources. lithium giant Albemarle Corp
Hancock Prospecting Pty. declined to comment on this matter on Monday, but they had previously expressed their intention to have a “prominent influence in Liontown’s future.” Their current shareholding is just below the 20% threshold that would trigger a mandatory takeover offer.
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