Orocobre, Galaxy to merge, creating world’s 5th largest lithium chemical company

Australian lithium miners Galaxy Resources and Orocobre have entered into a binding merger implementation deed that will see the latter acquire 100% of the fully paid ordinary shares in the former, the companies announced on Monday April 19.

The A$4 billion ($3.1 billion) merger will create the world’s fifth-largest lithium chemicals company, according to the announcement.

Under the agreement, Galaxy shareholders would receive 0.569 Orocobre shares for each Galaxy share, the companies said. Orocobre shareholders will ultimately own 54.2% of the fully diluted share capital of the combined entity and Galaxy shareholders will own the remaining 45.8%.

Martin Rowley, current chairman of Galaxy, would become non-executive chairman of the merged entity, while Robert Hubbard, current chairman of Orocobre, would become deputy chairman. Martín Pérez de Solay, current chief executive officer and managing director of Orocobre, would remain in these roles at the merged entity.

A new name for the merged entity will be selected in due course, both companies said.

“This transaction has the potential to be a significant value-creating opportunity for Galaxy and Orocobre shareholders. The merged entity’s growth opportunities in both brine and hard rock position it uniquely to take advantage of expected rising EV demand for lithium,” Rowley said.

“The logic of this merger is compelling. Both Orocobre and Galaxy shareholders, will benefit from the diversification, growth and scale of a top 5 global lithium chemicals company,” Hubbard stated.

“The merger consolidates the combined group’s position in Argentina and will give us significant operational, technical and financial flexibility to deliver the full value of our combined portfolio,” Pérez de Solay said.

What to read next
Tesla expects tax credits from the US Inflation Reduction Act (IRA) to be worth $150-250 million per quarter this year to the automaker and increase through the year as its car volumes grow, according to the company’s chief financial officer
Spot market premiums for nickel products showed mixed fortunes in Europe and the US in the week ended Tuesday January 24, with briquette premiums in both regions moving downward on a shift in sentiment
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
New government regulation due to be approved in March to multiply public and private sector initiatives
Albemarle has continued to shift its lithium sales to long-term variable contracts and away from spot contracts, with a focus on strategic customers through the battery supply chain, according to the president of the company’s energy storage division
Despite having the world’s largest known resources of lithium, Bolivia has been seriously lagging in its ability to turn them into resources for commercial development. But that could all be about to change.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.