Liontown Resources is back up for grabs as Albemarle withdraws its $6.6 billion takeover bid.
The news comes just three days after Albemarle was granted a seven-day extension to complete due diligence in Liontown.
“Our engagement with the Liontown team has been meaningful and productive,” Albemarle chief executive officer Kent Masters said. “We appreciate the level of cooperation we have received, and we thank the entire team for their efforts.”
In its statement announcing the decision, Albemarle noted growing complexities associated with the proposed transaction as a factor in the decision.
Albemarle is not the only company that has been eyeing off Liontown in the last few months. Gina Rinehart’s Hancock Prospecting has steadily increased its shareholding as Albemarle worked through its due diligence.
In early September, Hancock snapped up 7.72 per cent of Liontown’s ordinary shares, which then increased to 10.7 per cent two weeks later and 12.4 per cent three weeks after that.
On October 8, Hancock became Liontown’s largest shareholder, holding 16.7 per cent of Liontown’s ordinary shares.
Only four days ago, Hancock again increased its shares, moving to 19.9 per cent.
Although not noted in Albemarle’s statement today, it has been speculated that Hancock has also been vying for Liontown throughout the process.
Albemarle’s exit could pave the way for Hancock to acquire Liontown in its place.