Fierce competition for lithium ore resources overseas acquisitions in Ningde era encountered rising prices of lithium industry in the Americas

On November 1st local time, Millennium Lithium of Canada announced that it had received a higher offer from (Lithium Americas) of the Americas, the third offer it has received since July, indicating the shortage of strategic resources for electric vehicles.

According to Millennium Lithium's announcement, American Lithium, which is also listed on the Toronto Stock Exchange, has offered an offer equivalent to C $4.7 per share to shareholders of the existing company, which will be paid in cash of C $0.01 per share and common shares of Lithium America. Compared with the C $377 million pure cash acquisition agreement reached between the company and Ningde Times on Sept. 28, the latest offer of American Lithium rose by C $0.85 per share, or 22.1%, or 27.4% from the company's closing price on Friday.

The latest offer also includes a compensation clause. If Millennium Lithium cancels its contract with Ningde era, American Lithium will compensate the company for the $20 million contract termination fee paid to the Chinese electric car giant. At the same time, under the previous offer, Ningde Times will have 10 working days to make an offer no lower than that of Lithium in the Americas, depriving it of its status as a "better offer", which expires at 16:30 local time on November 16 in Vancouver.

As a result, Millennium Lithium also announced that it would postpone the meeting of shareholders and holders of equity certificates originally scheduled for the Ningde era acquisition on November 15 to November 18, waiting for a decision from the Ningde era. Details of the American lithium takeover offer will be made public after the final agreement is signed between the two companies.

It is worth mentioning that the latest development is the second time that Millennium Lithium has triggered a "better offer" clause in just over two months. As early as July this year, Ganfeng Lithium, a Chinese energy company, announced a full acquisition agreement with the company with a bid of $353 million, but Gan Feng opted out of the acquisition and received a termination fee of $10 million after the Ningde era slightly raised its offer in September.