Allkem and Livent merge to become Arcadium Lithium plc; ASX code is LTM

About Allkem

Allkem Limited (Allkem, the company, ASX:AKE) is a specialty lithium chemicals business that was created from the merger of Orocobre and Galaxy in November 2021. The company has hard rock assets in Western Australia and Canada, lithium brines in Argentina and a conversion plant in Japan. Allkem is dual listed on the ASX and the Toronto Stock Exchange (TSX).

Federal Court approves Allkem and Livent merger

Christmas has come early for Allkem shareholders with the Federal Court today giving its official seal of approval for the friendly merger of Allkem and Livent Corporation (Livent) to officially become Arcadium Lithium plc. This follows agreement by shareholders of both Allkem and Livent to merge the two companies to become a global integrated lithium chemicals producer. Allkem shareholders will control 56 percent of the new company.

The merger accelerates Allkem’s stated strategy of value-adding downstream vertical integration to provide greater capacity to meet growing customer demand, with less risk. The merged entity will become a global top 3 listed lithium company and one of just two vertically integrated lithium producers in the Western world capable of reliably supplying car makers and other advanced manufacturers reliant on battery technology. The other is Albemarle Corporation, which based in the USA.

Allkem’s chairman, Peter Coleman will become the chairman of Arcadium Lithium while Livent chief executive, Paul Graves, will become CEO.

New Allkem ASX Code: LTM

Allkem shares (AKE) from Friday 22 December are to be replaced by Arcadium Lithium plc CDIs, or CHESS Depositary Interests, using the ASX ticker ‘LTM’. Sale of these new securities (CDIs) will be on a deferred settlement basis. Arcadium Lithium plc CHESS Depositary Interests or CDIs are securities traded on the ASX that enable Australian investors to buy and settle their share purchases using the ASX settlement systems. This protects Australian investors buying Arcadium securities from settlement risk because settlement occurs in Australia under ASX settlement rules, and not in a foreign jurisdiction.

Arcadium Lithium plc (Arcadium) shares quoted on the New York Stock Exchange (NYSE) will use the ticker code ‘ALTM’.

The merger is legally effective from 4 January, which is the date Arcadium Lithium shares are to commence trading on the New York Stock Exchange. Arcadium Lithium CDIs will trade on a normal settlement basis in Australia from 5 January 2024.

Looking Ahead

Lithium is a critical element in modern battery technology and with 145 million electric vehicles (EVs) expected by 2030, compared to 11 million EVs today, reliable suppliers like Arcadium Lithium are set to benefit from rising demand for their product.

Moreover, the newly formed merged entity listed on the NYSE will from 4 January rotate into various market indices all over the world, increasing demand for the company’s shares by Index funds. Other buyers are likely to include Ethical and Green funds and investors who don’t consider the demand for lithium to be ‘cyclical’, like most other commodities.

These factors should support strong share price performance for Arcadium Lithium (LTM) shares, formerly Allkem, over the long term.