Investing.com — Shares of Arcadium Lithium plc (NYSE: ALTM , ASX: LTM ) rose 8% after the announcement that the Committee on Foreign Investment in the United States (CFIUS) has completed its review of the company’s proposed acquisition by mining giant Rio Tinto (NYSE: ) and found no unresolved issues of national security.
The approval marks a significant step forward for the deal, which was originally announced on October 9, 2024. With the CFIUS hurdle now cleared, Arcadium Lithium has also received merger control approval in several other key jurisdictions, including Australia, Canada, China, Japan, South Korea, United States Kingdom (TADAWUL:), and under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in the United States. The UK has also given approval to the investment review.
Despite this progress, the acquisition is still pending investment review approvals in Australia, Canada and Italy, in addition to other customary closing conditions. Arcadium Lithium remains optimistic, expecting the transaction to be finalized before mid-2025.
The movement of the company’s stock reflects investor confidence in the progress of the acquisition and the positive implications it has for Arcadium Lithium’s future operations and growth. CFIUS approval is a key step in international deals involving US business interests, as it ensures that the transaction does not pose a threat to national security, which can be a significant problem in the mining and production of critical materials such as lithium.
Investors are closely monitoring the remaining regulatory approvals, well aware that a successful acquisition by Rio Tinto could improve Arcadium Lithium’s position in the global lithium market, a sector that is becoming increasingly important due to growing demand for electric vehicles and renewable energy storage solutions.
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