According to an article in the AFR: Australia's Lynas REE had talks re a merger with the USA MP Materials
Summary of the AFR's article:
Major points:
Lynas Rare Earths and MP Materials, the world's two biggest non-China rare earths producers, discussed a merger to challenge China's dominance.
The talks were initiated by Lynas and involved a cash-and-scrip offer, but ultimately fell through.
Both companies are looking to expand their downstream processing capabilities, particularly for heavy rare earths.
A merger would benefit from tax breaks being considered by the US for rare earths processing and magnet making.
China maintains dominance in the sector, controlling 90% of processing and 99.9% of heavy rare earths separation.
Minor points:
Nick Curtis, founder of Lynas, previously attempted a similar merger with MP Materials' predecessor.
He believes a combined entity would provide more confidence to Western customers.
Both companies suffer from falling share prices due to softer rare earths prices.
Analysts see strategic merit in a merger but highlight the
lack of immediate solutions for heavy rare earths.
Could asx ASM fill the gap?