Orocore plans to acquire Galaxy for US $4 billion to establish the fifth largest lithium chemical company in the world

(Australian Stock Exchange: ore, TSX:ORL) and Galaxy Resources Limited (Australian Stock Exchange: GXY) (Galaxy) announced that they have signed a binding contract to implement the merger. Under the contract, Orocore will acquire a 100 per cent stake in Galaxy under the agreement.

It is reported that the total value of the agreement is 4 billion US dollars, and the merger between the two sides has created a new force in the global lithium industry, creating the fifth largest lithium chemical company in the world. With a diversified production base and an exciting growth platform, the new company has the potential to unleash significant synergies and realize value shared by all shareholders.

Commenting on the merger, Mart í n P é rez de Solay, CEO and Managing Director of Orocobre, commented: "this transaction will be of great significance and value to Galaxy and Orocobre shareholders. To help strengthen and advance our world-class portfolio, the combined entity's growth opportunities in brine and hard rock enable it to uniquely take advantage of the expected growing demand for lithium for electric vehicles. "

Simon Hay (Simon Hay), CEO of Galaxy, also commented, "the merger with Orocobre represents an exciting opportunity. Orocobre and Galaxy shareholders will integrate and realize the full potential technical capabilities of our portfolio. This transaction will enable the Group to significantly accelerate our joint growth projects. "

The purpose of this transaction is to create a leading ASX lithium company and the five largest lithium chemical companies in the world, to build a global TOP5 lithium chemical company, and to become one of the largest and most geographically diverse lithium chemical producers in the world.