M&A · Energy · Industrial Inorganic Chemicals
Rio Tinto PLC to acquire Arcadium Lithium plc
Announced Oct 9, 2024 · Closed Mar 6, 2025
Deal value$6.70BEV $6.54B
Premium90.0%To unaffected price
EV / Adj. EBITDA14.6x7.2x EV / Revenue
ConsiderationAll cash$5.85 per share
Transaction
- Acquirer
- Rio Tinto PLC (RIO)
- Target
- Arcadium Lithium plc
- Buyer type
- Strategic
- Offer price per share
- $5.85
- Enterprise value
- $6.54B
- Status
- Closed Mar 6, 2025
Deal protections
- Break fee (target pays)
- $200M · 3.0%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Goldman Sachs, JPMorgan
- To the target
- Gordon Dyal, UBS
- UBS fee
- $34.0M
Sector context · Energy
- Comparable deals
- 38 in the prior 24 months
- Premium
- 90.0% vs. 16.1% sector median
- EV / Adj. EBITDA
- 14.6x vs. 6.3x sector median
- Break fee
- 3.0% vs. 2.9% sector median
Timeline
- AnnouncedOct 9, 2024
- Proxy filedNov 1, 2024
- Definitive proxyNov 20, 2024
- Shareholder voteDec 23, 2024
- ClosedMar 6, 2025
Valuation · fairness opinions
Discounted cash flowGordon Dyal$5.55$6.72
Discounted cash flowGordon Dyal$4.84$5.90
Discounted cash flowUBS$5.39$6.91
Discounted cash flowUBS$4.68$6.04
Trading comparablesUBS$4.65$5.49
Trading comparablesUBS$3.52$4.39
Trading comparablesUBS$3.81$4.57
Offer $5.85
Implied value per Arcadium Lithium plc share by analysis, from Gordon Dyal and UBS · DCF discount rate 9%–10%.