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CATL Gave Up Acquiring Canadian Company Millennial Lithium Corp
Nov 18, 2021 15:23CST
Source:SMM
The Canada-based Millennial Lithium Corp and Lithium Americas (LAC) jointly announced that they have entered into a definitive purchase agreement on November 17, 2021 for Lithium Americas to acquire all of Millennial's shares for a total consideration of approximately $400 million. Based on the closing price of LAC on November 16, 2021, Millennial shareholders will own approximately 9.1% equity of LAC.

SHANGHAI, Nov 18 (SMM) – The Canada-based Millennial Lithium Corp and Lithium Americas (LAC) jointly announced that they have entered into a definitive purchase agreement on November 17, 2021 for Lithium Americas to acquire all of Millennial's shares for a total consideration of approximately $400 million. Based on the closing price of LAC on November 16, 2021, Millennial shareholders will own approximately 9.1% equity of LAC.

Under the terms of the latest takeover offer between Lithium Americas and Millennial, the termination of Millennial's contract with CATL required Lithium Americas to reimburse CATL for of US$20 million. This compensation cost has now been repaid.

And from the fact that Millennial has received three large enterprises’ bidding up, it is not difficult to see that in this "mine-is-king" era, the acquiring of lithium ore resources is increasingly embattled. In addition, in September and October this year, the Australian lithium mine Pilbara auctioned its spodumene concentrate at a historically high twice, which also boosted the market sentiment. Lithium ore resources are comparatively scarce at present, and are highly priced as well.

Not only lithium mines, but also lithium from salt lakes, which are rich in lithium resources, are being snapped up by companies. Tibetan Everest recently announced a US$1.7 billion salt lake project in Argentina to build lithium carbonate production lines.

(previously on the story: Rumour Goes that CATL Will Bid for A Canadian Lithium Company at A Price of US$298 Million)

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