Why is this significant? Well, for one thing, it presents a potential exit scenario for those lithium groups with quality assets - Orocobre's Olaroz, Lithium One, Lithium Americas, International Lithium, Rodinia are some of the interesting projects coming up.
I'll write more about this in the coming days - needless to say the lithium industry needed some marketable news after graphite industry took away the Li-ion interest from the market after earlier this year.
http://www.businesswire.com/news/home/20120823005594/en/Rockwood-Holdings-Agrees-Acquire-Talison-Lithium
PRINCETON, N.J.--()--Rockwood Holdings Inc. (NYSE: ROC) announced today that it has entered into a definitive agreement with Talison Lithium Limited (TSX: TLH) to acquire all of the outstanding shares of Talison in an all-cash transaction for C$6.50 per share for an equity purchase price of approximately C$724 million, on a fully diluted basis (US$732, based on an exchange rate of C$1 = US$1.011635). The Board of Directors of Talison has unanimously recommended the transaction to Talison shareholders. The transaction is subject to the approval of Talison shareholders and other customary closing conditions.
“The acquisition of Talison is the logical next step in further strengthening our lithium business and enhancing our capabilities. This acquisition will enable us to better serve both our existing global customers as well as Talison's current lithium concentrate customers in China and the rest of the world.”Rockwood intends to finance the acquisition using existing cash on its balance sheet and new debt financing.
Commenting on the transaction, Seifi Ghasemi, Chairman and CEO of Rockwood, “The acquisition of Talison is the logical next step in further strengthening our lithium business and enhancing our capabilities. This acquisition will enable us to better serve both our existing global customers as well as Talison's current lithium concentrate customers in China and the rest of the world."
Lazard is acting as exclusive financial advisor to Rockwood, and Gilbert & Tobin is acting as Rockwood's legal counsel.
ABOUT ROCKWOOD
Rockwood Holdings, Inc. is a leading global specialty chemicals and advanced materials company. Rockwood has a worldwide employee base of approximately 10,000 people and annual net sales of approximately $3.7 billion. Rockwood focuses on global niche segments of the specialty chemicals, pigments and additives and advanced materials markets. For more information on Rockwood, please visit www.rocksp.com.
ABOUT TALISON
Talison is a leading global producer of lithium and has been supplying a global customer network from the Greenbushes Lithium Operations in Western Australia for over 25 years. In anticipation of sustained growth in lithium consumption, Talison has doubled its production capacity at the Greenbushes Lithium Operations.
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