Australia s Orocobre buys Galaxy to make world s fifth-largest lithium company Shruti Sonal ,
By Shruti Sonal
(Reuters) - Australia s Orocobre Ltd and Galaxy Resources announced a A$4 billion ($3.1 billion) tie-up on Monday to create the world s fifth largest lithium miner, as demand soars for the key raw material in electric vehicle batteries.
Orocobre will aquire peer Galaxy under a scheme of arrangement for A$1.78 billion in shares, also creating Australia s largest lithium pure play. It s overwhelmingly positive. On a high level, you have got significant synergies with both businesses having an Argentina base, said analyst Reg Spencer of broker Canaccord Genuity.
New Lithium Giant Emerges to Feed Surging Battery Demand
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By Mark Woodruff
For the week ending Friday 16 April, there were twelve upgrades and seven downgrades to ASX-listed companies by brokers in the FNArena database.
Mainstream Group received two downgrades from separate brokers. Both Ord Minnett and Morgans downgraded the company to a Hold rating in the belief the $2 bid for the company by SS&C Technologies was both fully valued and likely to be final. This has proven to be correct as the deadline of Friday 16 April has passed without a matching offer or more favourable terms from prior bidder Vistra.
The adjectives hefty and expensive were applied by two brokers to the price paid by Regis Resources for a 30% stake in the Tropicana gold mine. As a result, the company headed the table for the largest percentage decrease in target price by brokers last week. Nonetheless, the term transformational was also applied to the transaction and an increase in both scale and diversity were seen as positive attributes for the ‘new’
Lithium boom 2.0 drives $4b merger, supply push
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This yearâs lithium price boom will prove more âdurableâ than the last and can withstand an âaccelerationâ of new lithium supply, according to the two Australian listed companies that struck a $4 billion battery minerals merger on Monday.
The combination of Orocobre and Galaxy Resources will create the worldâs fifth biggest lithium producer by market capitalisation and one that is more diversified by product and geography, with ambitions of securing a place in the ASX100.
Brisbane based Orocobre and Perth based Galaxy produce lithium in Argentina and Western Australia respectively and were the pioneers of the locally-listed lithium sector, which is split between those that extract the commodity from South American groundwater and those that extract it from hard Australian rock.
> Nachricht Orocobre and Galaxy agree to a proposed A$4B merger of equals, establishing a new force in the global lithium sector
Nachrichtenquelle: globenewswire | 19.04.2021, 13:18 | 79
th
largest global lithium chemicals company with a diversified production base and exciting growth platform, with potential to unlock significant synergies and realise value to be shared by all shareholders. BRISBANE, Australia, April 19, 2021 (GLOBE NEWSWIRE) Orocobre Limited (ASX:ORE, TSX:ORL) (
Orocobre) and Galaxy Resources Limited (ASX:GXY) (
Galaxy) are pleased to announce that they have entered into a binding Merger Implementation Deed (
MID) under which the two companies will merge via a Galaxy Scheme of Arrangement
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