Chile’s Regulator Reckons Codelco-SQM Lithium Deal Needs No Shareholder Vote

On 18 June, Chile’s financial regulator CMF ruled that the planned lithium joint venture between state-run Codelco and miner SQM does not require approval from SQM shareholders, despite objections from Tianqi Lithium, which holds a 20% stake in SQM.

The regulator determined that only SQM’s board of directors needs to approve the deal, dismissing Tianqi’s arguments as invalid under Chilean financial regulations.

The joint venture will grant Codelco a controlling stake of 50% plus one share and aims to increase Chile’s role in lithium production while boosting SQM’s output.

Tianqi, SQM’s second-largest shareholder, expressed concerns about the transparency of the negotiations and may appeal the decision in court.

Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market
Email: lilysu@smm.cn