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April 19 (Reuters) – Australian lithium miner Orocobre Ltd ORE.AX mentioned on Monday it might purchase rival Galaxy Assets GXY.AX to type the world’s fifth-largest lithium chemical compounds firm valued at A$four billion ($3.09 billion).
The deal comes at a time of accelerating business consolidation within the wake of hovering costs for the uncooked materials utilized in electrical automobile (EV) batteries.
“The merged entity’s development alternatives in each brine and arduous rock place it uniquely to reap the benefits of anticipated rising EV demand for lithium,” Galaxy Chairman Martin Rowley mentioned.
Orocobre and Galaxy, which function the Olaroz and Sal de Vida lithium initiatives in Argentina respectively, are additionally eyeing a consolidation of their property within the nation.
“The merger consolidates the mixed group’s place in Argentina and can give us vital operational, technical and monetary flexibility to ship the complete worth of our mixed portfolio”, Orocobre Chief Government Martín Pérez de Solay mentioned.
Below the deal, Galaxy shareholders will obtain 0.569 Orocobre shares for every Galaxy share held. After the merger, Orocobre shareholders will personal 54.2% of the mixed firm, whereas Galaxy shareholders will personal the remaining.
($1 = 1.2947 Australian {dollars})
(Reporting by Shruti Sonal in Bengaluru; modifying by Diane Craft)
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