Canadian mining company Lithium Americas wants to buy its rival Millennial Lithium. It offered more than a Chinese battery manufacturer. Millennial Lithium shares strengthened sharply.
Between mining company Lithium Americas from Canada and the largest battery manufacturer, China’s Contemporary Amperex Technology Ltd. (CATL) literally a war has broken out over who will control another Canadian miner, Millennial Lithium. While CATL for Millennial about a month ago offered 377 million Canadian dollars in a recount, Lithium Americas has now come up with an offer of equal to 400 million.
Lithium Americas offered Millennial shareholders a price of $4.70 Canadian dollars per share, which would be paid in part in Lithium Americas stock, partly in cash. Millennial shares responded to the offer with a sharp strengthening of more than a quarter. Millennial Lithium management decided that it was a better offer than from China, but it gave ten days to decide whether they would respond to it.
If successful, Lithium Americas would gain access to deposits that would represent additional lithium extraction at a volume of around 24 thousand tons per year for the next 40 years. Millenial Lithium has rich sites in Argentina.
