After almost a year of discussions, Albemarle will move forward with its Liontown acquisition after submitting a best and final proposal of $6.6 billion.
The news comes less than a week after it was reported that the deal was still on the table, despite no conversation happening between the two minors in five months.
Albemarle has been gunning for Liontown since October 2022 when it submitted an offer of $2.20 per share. Liontown rejected the bid, and Albemarle let dealings cool off before submitting a second bid for $2.35 per share on March 3, 2023.
In a statement at the time, Albemarle called the proposal a “compelling opportunity” for Liontown shareholders. But Liontown did not agree.
Albemarle was undeterred, submitting a third offer just weeks later on March 27. The revised offer was for $2.50 per share, valuing Liontown at $5.2 billion. This too was knocked back.
“The Liontown board and its advisers carefully considered the indicative proposal and unanimously determined that it substantially undervalues Liontown, and therefore is not in the best interests of shareholders,” Liontown said.
Now, with an offer of $3 per share, valuing the company at $6.6 billion, it seems Liontown is ready to play ball.
“Liontown intends to grant Albemarle opportunities to conduct a period of due diligence before it puts forward a binding offer,” Albemarle said in a statement.
“Should Albemarle make a binding proposal at $3 per share, the Liontown board intends to unanimously recommend that Liontown shareholders vote in favor of the proposal.”
In acquiring Liontown, Albemarle is hoping to enhance the scale of its energy storage business, expand its presence in Australia and increase the opportunity to meet a rapidly growing lithium demand.
The current revised proposal is non-binding and there is no certainty that any transaction will be agreed to or will proceed.