Albemarle to launch due diligence over Liontown

Takeover target Liontown Resources (ASX:LTR) and suitor Albemarle (NYSE:ALB) have now agreed to the terms of a non-disclosure and exclusivity agreement, in which due diligence will begin shortly.

On 4 September 2023 Mining.com.au reported a non-binding indicative proposal from Albemarle had been made to acquire all of the ordinary shares outstanding in Liontown for $3 in cash per share via scheme of arrangement.

Liontown recommended the revised takeover offer from US-based Albemarle, which is at a price higher than the $2.5 proposal the target received in March 2023.

It is expected that Albemarle’s due diligence will take about 4 weeks

In its announcement last week, Liontown indicated that the board had determined to grant Albemarle an opportunity to conduct due diligence to enable the suitor to put forward a binding proposal, subject to the parties agreeing to a mutually acceptable non-disclosure and exclusivity agreement.

It is expected that Albemarle’s due diligence will take about 4 weeks.

That due diligence will be on an exclusive basis and at this point, Liontown’s shareholders do not need to take any action.

Liontown is an emerging tier-one battery minerals producer. Its aim is to be an ESG leader and a globally significant provider of battery minerals for the rapidly growing clean energy market.

Write to Adam Orlando at Mining.com.au

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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.