- Rockwood Holdings (ROC) has secured part ownership of the world's largest and richest spodumene source of lithium by entering a joint venture with privately held Chinese company Chengdu Tianqi Industry Group to acquire Talison Lithium.
- Rockwood will pay $196M and receive a 49% stake in Talison while Tianqi is paying $204M and receiving 51%.
- Rockwood will also provide the JV with a two-year secured loan of up to $670M at 8% interest.
- Tianqi has a three-year call option to invest 20-30% in the equity of Rockwood Lithium, the European arm of Rockwood's lithium business.
- The deal will add significantly to Rockwood's 2014 EPS, and to its lithum resources in the U.S. and Chile. (PR)
Rockwood buys into lithium provider
Dec 2 2013, 07:16 ET