Livent and Allkem Shareholders Approve Merger of Equals

Rhea-AI Summary

Livent Corporation (NYSE: LTHM) and Allkem Limited (ASX|TSX: AKE) have obtained shareholder approvals to complete a merger of equals, forming Arcadium Lithium plc (NYSE:ALTM) (ASX:LTM) on January 4, 2024. The merger is supported by Livent and Allkem shareholders, aiming to create long-term sustainable value for stakeholders.

Financial Analyst

The merger of Livent Corporation and Allkem Limited, resulting in the formation of Arcadium Lithium, represents a significant consolidation within the lithium market. This strategic move is likely to alter competitive dynamics and could potentially lead to economies of scale, improved market positioning and enhanced research and development capabilities. Investors should monitor the integration process closely, as the success of such mergers often hinges on the seamless blending of operations and corporate cultures.

From a financial perspective, the merger could lead to cost synergies and a stronger balance sheet, which are critical for funding expansion projects and weathering market volatility. However, the costs associated with the merger process and potential regulatory hurdles in different jurisdictions could impact the short-term financials of the newly formed entity.

Stakeholders should also consider the implications of this merger in the context of the growing demand for lithium, driven by the electric vehicle (EV) and renewable energy sectors. If Arcadium Lithium can capitalize on this demand surge, there could be significant long-term upside. However, the volatility of lithium prices and the regulatory environment surrounding mining and environmental concerns could pose challenges.

Industry Analyst

The lithium industry is pivotal to the global shift towards renewable energy and electric vehicles. As such, the merger between Livent and Allkem to form Arcadium Lithium is a substantial event that could reshape industry leadership. It is important to assess how this merger will affect global lithium supply, particularly given the critical nature of this resource in battery production and energy storage solutions.

For industry stakeholders, the creation of Arcadium Lithium may lead to more robust research and development initiatives, which are essential for improving lithium extraction and processing technologies. A larger, merged entity may also have greater influence in price negotiations and supply agreements with battery manufacturers and automakers.

The merger's success will largely depend on the company's ability to navigate the geopolitical landscape of lithium mining, which includes operations in various countries with different regulatory frameworks. Additionally, the environmental impact of lithium mining is an ongoing concern and Arcadium Lithium's approach to sustainable practices will be closely watched by both investors and environmental groups.

PHILADELPHIA, Dec. 19, 2023 /PRNewswire/ -- Livent Corporation (NYSE: LTHM, "Livent") and Allkem Limited (ASX|TSX: AKE, "Allkem") announced that they have obtained all requisite shareholder approvals necessary to complete the merger of equals transaction previously announced on May 10, 2023.  The two companies expect to close the merger on January 4, 2024 and begin operating under the name Arcadium Lithium plc (NYSE:ALTM) (ASX:LTM).

"The strong support of Livent and Allkem shareholders for this transformational merger is a testament to the compelling value proposition of Arcadium Lithium," said Paul Graves, President and CEO of Livent and future Chief Executive Officer of Arcadium Lithium.  "We look forward to closing the merger and pursuing the opportunities to create greater long-term, sustainable value for all of our stakeholders."

The final voting results on all proposals voted on at Livent's special meeting will be filed with the SEC in a Form 8-K and will also be available at https://ir.livent.com.

About Livent 
For nearly eight decades, Livent has partnered with its customers to safely and sustainably use lithium to power the world. Livent is one of only a small number of companies with the capability, reputation, and know-how to produce high-quality finished lithium compounds that are helping meet the growing demand for lithium. The Company has one of the broadest product portfolios in the industry, powering demand for green energy, modern mobility, the mobile economy, and specialized innovations, including light alloys and lubricants. Livent has a combined workforce of approximately 1,350 full-time, part-time, temporary, and contract employees and operates manufacturing sites in the United States, England, China and Argentina. For more information, visit Livent.com.

Important Information and Legal Disclaimer:

Forward-Looking Statements

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this news release are forward-looking statements. In some cases, we have identified forward-looking statements by such words or phrases as "will likely result," "is confident that," "expect," "expects," "should," "could," "may," "will continue to," "believe," "believes," "anticipates," "predicts," "forecasts," "estimates," "projects," "potential," "intends" or similar expressions identifying "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative of those words and phrases. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for the Company based on currently available information. There are important factors that could cause Livent's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including the factors described under the caption entitled "Risk Factors" in Livent's 2022 Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 24, 2023, as well as other SEC filings and public communications. Although Livent believes the expectations reflected in the forward-looking statements are reasonable, Livent cannot guarantee future results, level of activity, performance or achievements. Moreover, neither Livent nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Livent is under no duty to update any of these forward-looking statements after the date of this news release to conform its prior statements to actual results or revised expectations.

Media contact: Juan Carlos Cruz +1.215.299.6725
juan.carlos.cruz@livent.com

Investor contact: Daniel Rosen +1.215.299.6208
daniel.rosen@livent.com

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SOURCE Livent Corporation

What is the merger of equals transaction involving Livent Corporation and Allkem Limited?

The merger of equals transaction involves Livent Corporation and Allkem Limited combining to form Arcadium Lithium plc, aiming to create greater long-term, sustainable value for stakeholders.

When is the merger expected to close?

The merger is expected to close on January 4, 2024, with the companies operating under the name Arcadium Lithium plc (NYSE:ALTM) (ASX:LTM).

Who will be the future Chief Executive Officer of Arcadium Lithium?

Paul Graves, President and CEO of Livent, will be the future Chief Executive Officer of Arcadium Lithium.

Where can the final voting results be accessed?

The final voting results will be filed with the SEC in a Form 8-K and will also be available at https://ir.livent.com.