Livent Corporation signed a definitive agreement to acquire Allkem Limited in a merger of equals transaction for $6.4 billion.
The transaction is expected to close by the end of calendar year 2023. Share for share exchange transaction expected to be a tax-free transaction for shareholders. The transaction have been unanimously approved by the Board of Directors of each company, and in the case of Allkem, subject to the Independent Expert concluding, and continuing to conclude, that the Scheme is in the best interest of Allkem shareholders. Closing of the Transaction is subject to the satisfaction or waiver of customary closing conditions, including receipt of regulatory approvals, approval by both Livent and Allkem shareholders, the Independent Expert concluding that the Scheme is in the best interest of Allkem shareholders and not changing, withdrawing, or qualifying that conclusion, tax opinion delivery, and Australian tax class ruling confirmation, and Australian Court approval. The Transaction Agreement includes reciprocal exclusivity arrangements (including notification obligations) in favour of both parties, a matching right regime in favour of both parties and termination fees in favour of both parties. The exclusivity arrangements are subject to customary exceptions that enable the directors of Allkem and Livent to comply with their respective fiduciary and/or statutory duties. As per filling on October 24, 2023, Livent and Allkem have agreed that the name of the combined company will be Arcadium Lithium plc. As of November 8, 2023, Federal Court of Australia approves convening of Scheme Meeting and dispatch of Scheme Booklet with merger effective date of January 4, 2024. As of November 14, 2023, all required pre-closing regulatory approvals in connection with the proposed merger have been received including antitrust approvals in Canada, China, Japan, South Korea and the U.S., as well as completion of investment screenings in Australia, the U.K. and the U.S. The closing of the Transaction remains subject to approval by both Livent and Allkem shareholders, and Australian Court approval of the Scheme. As on November 15, 2023, the proposed merger of Allkem and Livent Corporation has received Australian Foreign Investment Review Board approval. Allkem, Livent and NewCo have now received antitrust/competition approvals in Canada, China, Japan, South Korea and the U.S., as well as foreign investment approvals/completion of investment screenings in Australia, the U.K. and the U.S. This represents all competition and foreign investment approvals that are expected to be required prior to completion. As per filling on December 19, 2023, Allkem shareholders vote in favour of merger with Livent and a final court approval is still pending. If the Court approves the Scheme at the Second Court Hearing, Allkem intends to lodge a copy of the orders of the Court with the Australian Securities and Investments Commission on December 21, 2023. As of December 19, 2023, Livent and Allkem announced that they have obtained all requisite shareholder approvals necessary to complete the merger of equals. 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).
Gordon Dyal & Co., LLC. is acting as exclusive financial advisor and William H. Aaronson, Cheryl Chan, William A. Curran, Kyoko Takahashi Lin, Michael Kaplan, Howard Shelanski and Suzanne Munck af Rosenschold of Davis Polk & Wardwell LLP and Guy Alexander, Dave Filov, Bryn Hardcastle, Andrew Wong, Ellen Thomas and Adrian Chek of Allens are acting as legal counsel to Livent. Gordon Dyal & Co. Advisory Group LP acted as fairness opinion provider to the board of directors of Livent. Livent has agreed to pay Gordon Dyal & Co. a fee of $35.0 million for Gordon Dyal & Co.?s services rendered in connection with the transaction. UBS Securities Australia Limited and Morgan Stanley & Co. LLC are acting as financial advisors and Antonella Pacitti, Roger Davies, Cairo Leicester and Tom Carmody of King & Wood Mallesons and Joseph P. Michaels, Brian J. Fahrney, James Wood, Rachel D. Kleinberg, Jason Menzies, Sonia Gupta Barros, Sara M. von Althann, William Blumenthal, Vincent Brophy, Rosanna Connolly, Laura Collins, Andrew Shoyer, James Mendenhall, Sven De Knop, Grigore Alexandru, Matthew E. Johnson, Christian E. Pilhofer, Teresa L. Reuter, Elizabeth K. McCloy, Heather M. Palmer, Anna Remis, Sarah A. Jehl and Tim Chandler of Sidley Austin LLP are acting as legal counsel to Allkem. Fasken Martineau DuMoulin LLP acted as a legal advisor to Allkem Limited. Morrow Sodali acted as a proxy solicitor to Livent Corporation. Simon Dinning and Alexander Curry of Ogier LLP acted as legal advisors for Livent.