Why did Allkem Limited receive Foreign Investment Review Board Approval? Allkem Limited

Why did Allkem Limited receive Foreign Investment Review Board Approval?

Allkem Limited, an Australian-based producer of pure metals, has announced that the planned merger between itself and Livent Corporation, which will result in the creation of a new holding company, Arcadium Lithium plc (NewCo), has received Australian Foreign Investment Review Board (FIRB) approval. This represents a major milestone in the completion of the merger which is expected to result in significant consequences in the lithium market worldwide.

Approval Received from Competitors and Investors

Allkem, Livent, and NewCo have already received approval from antitrust/competition authorities in Canada, China, Japan, South Korea, and the U. S. , as well as foreign investment approvals screening in Australia, the U. K. and the U.

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S. This marks the full clearance of competition and foreign investment applications required before the merger's completion.

Further Approval Required for Closing of Transaction

Allkem and Livent are expecting the final merger to take place on 4 January 2024, but require several other closing conditions to be fulfilled before then. These closing conditions include the approval of both Livent and Allkem shareholders and the Australian Court approval of the scheme.

Merger to Result in New Holding Company

The merger between Allkem and Livent, which is expected to result in a new holding company, NewCo, will create a major competitor in the market for lithium production. The combined entity will bring together Allkem's abundance of experience and capability in producing pure metals with Livent's expertise and esteemed reputation in the production of sustainable lithium products.

Implications of the Merger

The approval of FIRB signifies the rapidly growing interest in the production of lithium, in a world that is working towards becoming more energy-efficient. Large car manufacturers have expressed their ongoing interest in securing local supplies of lithium to support electric vehicle production. Once the formal merger is completed, NewCo will combine Allkem and Livent's expertise in pure metals and lithium production to create a more sustainable, eco-friendly approach to producing the electrical and battery end-use markets.

In summary, Allkem Limited's recent approval from the Australian Foreign Investment Review Board is a notable achievement in the completion of their proposal to merge with Livent Corporation. The new holding company - NewCo, will drive the combined resources of Allkem and Livent, creating a leading producer of pure metals and highlighting a commitment to sustainable lithium production methods.

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