Liontown opens the door to a lithium mega-deal

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Liontown opens the door to a lithium mega-deal
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West Australian lithium minnow Liontown Resources is potentially on the cusp of sealing a $6.6 billion takeover by one of the world’s largest lithium producers.

West Australian lithium player Liontown Resources has opened the door to a $6.6 billion takeover by one of the world’s largest lithium producers, Albemarle, in what is shaping up as a big payday for the company’s investors.

“Should Albemarle make a binding proposal at $3.00 per share, subject to agreement of a mutually acceptablerecommend shareholders vote in favour of the proposal in the absence of a superior proposal and subject tointerests of shareholders,” the board said in a statement. The latest bid, Albemarle’s third in five months, is at a 15 per cent premium to Liontown’s closing share price on Friday. Its previous non-binding proposals were made on March 3 this year, at $2.35 a share, and on October 20 last year at $2.20 a share.Trevor Collens

If successful, the deal would deliver a stunning return for Liontown’s faithful early shareholders. The miner listed on the ASX in 2018 at 3¢.

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