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(Kitco News) - Allkem and Livent announce today plants to combine in an all-stock merger of equals valuing the combined company at US$10.6 billion.
The new company will have combined revenue of approximately $1.9 billion and adjusted EBITDA of approximately $1.2 billion.
The transaction is expected to close by the end of calendar year 2023, and upon closing of the all-stock merger of equals, Allkem shareholders will own approximately 56% and Livent shareholders will own approximately 44% of NewCo
The companies touted synergies to be realized by the deal.
"Estimated run-rate operating cost synergies of approximately US$125 million (pre-tax) per annum from SG&A, asset optimization, and logistics and procurement savings. A significant portion of the synergies are expected to be realized through removing duplicate costs, improvement of procurement, site management, transport, and logistics functions at Sal de Vida, Hombre Muerto, and Québec, and through closer integration of operations. The majority of the annual run-rate pre-tax operating cost synergies are expected to be realized within three years," wrote the companies in a news release.
