Aug 23 (Reuters) – Specialty chemicals producer Rockwood
Holdings Inc said it would buy lithium producer Talison
Lithium Ltd for C$724 million ($729 million) in cash to
strengthen its lithium business.
Rockwood said it will pay C$6.50 per Talison share – a 53
percent premium to the stock’s Wednesday close on the Toronto
Stock Exchange.
Rockwood, which has been betting on the increasing demand
for lithium ion-based batteries, has said it expects
battery-grade lithium products to show double-digit sales growth
this year.
The company earlier this year said it would invest $140
million in a 20,000-metric-ton lithium production plant in
Chile. Lithium business accounted for 14 percent of Rockwood’s
June quarter sales of $905.6 million.
Talison Lithium, headquartered in Perth, Western Australia,
also operates in Chile.
Lazard advised Rockwood while Macquarie Capital in Australia
and Canada are acting as financial advisers to Talison.
