Arcadium Lithium Shareholders Approve Rio Tinto Deal

Arcadium Lithium announced on Monday that its shareholders approved a $6.7 billion sale to Australian mining giant Rio Tinto. The news was positively received in the stock market, and Arcadium's shares rose over 2% in after-hours trading.

However, there are some hurdles to the agreement. Arcadium is currently facing legal challenges from some of its shareholders. These shareholders have filed a lawsuit against the company, alleging misrepresentation, concealment, and negligence related to the acquisition deal. This information was disclosed in a regulatory filing made by Arcadium earlier this month.

Earlier this year, Rio Tinto announced its intention to acquire Arcadium at a cash price of $5.85 per share. This purchase price represented a premium of approximately 90% compared to Arcadium’s closing share price when the potential deal was first reported by Reuters on October 4.

This acquisition would grant Rio Tinto access to Arcadium's lithium mines, processing facilities, and deposits located in Argentina, Australia, Canada, and the United States. Additionally, Rio Tinto would take over Arcadium's customer base, which includes major automotive manufacturers such as Tesla, BMW, and General Motors.

"We are confident that this transaction will benefit our customers, employees, and the communities in which we operate in the future, and I am excited about the road ahead," said Paul Graves, president and CEO of Arcadium Lithium, in a statement.