US chemical giant Albemarle is set to secure its takeover bid for Australia’s Liontown Resources in a new $3 a share offer after months of high-stakes bidding.
Shares in ASX-listed Liontown (ASX: LTR) surged Monday after the board backed a final bid from the chemical company.
This is a 20% premium on the initial offer of $2.50 made in March 2023, rejected by the board of the Western Australian lithium firm.
Liontown was as low as 8 cents a share in early 2020.
The board will recommend to shareholders the company be talked over, pending final approvals.
There has been a huge boom in lithium in the last few years, particularly since 2020 as car makers scramble to meet production targets for EVs.
The Western Australian-based company has existing supply agreements with LG in South Korea and Telsa and Ford Motors in the US.
“The intention of the Liontown Board is to unanimously recommend shareholders vote in favour of the proposal in the absence of a superior proposal,” Liontown said in a statement.
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