Olaroz project, Argentina. Source: AKE
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  • Ex-Woodside (WDS) Chief Peter Coleman is set to head NewCo, a new global lithium chemicals producer formed through the merger of Allkem (AKE) and Livent
  • Both parties struck a definitive agreement to join forces, valuing the combined company at US$10.6 billion (A$15.7 billion)
  • The combined company aims to become the third-biggest lithium producer in the world by the end of 2027, with production expected to hit approximately 250,000 tonnes
  • The transaction will close at the end of this year, with Allkem shareholders holding 56 per cent and Livent shareholders possessing 44 per cent of NewCo
  • AKE shares are up 18.1 per cent and trading at $15.25 at 2:45 pm AEST

Ex-Woodside (WDS) Chief Peter Coleman is set to head NewCo, a global lithium chemicals producer formed through the merger of Allkem (AKE) and Livent.

Both parties struck a definitive agreement to join forces, valuing the combined company at US$10.6 billion (A$15.7 billion).

Allkem reported the vertically integrated business model would enhance the operational flexibility of NewCo and increase global capabilities to strengthen customer service across a more resilient supply chain.

Liven has nearly eight decades experience producing lithium chemicals for energy storage and other specialised uses and is considered a world leader in lithium processing technologies.

Meanwhile, Allkem brings a wealth of expertise in lithium extraction through conventional brine-based methods, hard rock mining, and lithium processing, complementing Livent’s strengths.

Livent President and Chief Executive Officer Paul Graves said he was “excited” for what lies ahead as the two companies combine forces to lead the transition to EVs and cleaner energy.

“We look forward to playing an even bigger role in the acceleration of decarbonisation policies by providing the lithium needed to enable this critical global energy shift,” he said.

“This transaction will capitalise on our highly complementary business models and our collective strengths, including our best-in-class technologies, assets, and people, to be a leading force in our industry driving growth in EV and energy storage applications,”

Allkem CEO Martín Pérez de Solay added the combination would be “transformational” for both parties.

“We are bringing together two highly complementary businesses to create a leading global lithium chemicals company, building on Allkem’s demonstrated track record of integration,” he said.

The combined company aims to become the third-biggest lithium producer in the world by the end of 2027, with production expected to hit approximately 250,000 tonnes.

The transaction will be finalised at the end of 2023, with Allkem shareholders holding 56 per cent and Livent shareholders possessing roughly 44 per cent of NewCo.

AKE shares were up 18.1 per cent and trading at $15.25 at 2:45 pm AEST.

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