Australian lithium miners Orocobre and Galaxy to merge in $3bn deal

Australian lithium miners Galaxy Resources (ASX:GXY) and Orocobre (ASX:ORE) have agreed to a merger that would create a $3.1 billion (A$4bn) company, set to be the world’s fifth largest producer of lithium chemicals, the refined form of the raw material used to make EV batteries.

The business combination, the biggest mining sector deal of the year so far, will unlock significant synergies for the new company, the companies said.

The deal values Galaxy at about A$3.53 a share, a 2.2% discount to Friday’s close, and has the backing of both company boards.

“The logic of this merger is compelling,” Orocobre chairman, Robert Hubbard, who becomes deputy chairman of the new merged company, said in the statement.

More to come…

from MINING.COM https://ift.tt/2ROMeF5