Allkem and Livent hookup summary

[Sparty]

Australian lithium giant Allkem and US group Livent are merging to become the third-biggest lithium producer in the world with production expected to hit almost 250,000 tonnes by the end of 2027.

The merged group will provide customers with the full suite of lithium products, moving closer to their customers. Demand continues to build rapidly, but supply is being constrained by project delays and particularly cost overruns, due to surging construction costs and labour shortages. The proximity of the two companies' projects in Argentina and Canada means they can integrate their facilities, slash corporate costs, share infrastructure, and streamline procurement, engineering, and construction work.

The merger is forecast to be at least $US125m in annual synergies, with a one-off $US200m capital expenditure saving.

Lithium companies Allkem (ASX: AKE) and US-based Livent have today announced a US$10.6 billion (AUD$15.7 billion) ‘merger of equals’ that will create a global chemicals producer called NewCo.https://www.businessnewsaustralia.co...-producer.html