Arcadium Lithium stock jumps on CFIUS clearance for Rio Tinto deal

Investing.com — Shares of Arcadium Lithium plc (NYSE: ALTM, ASX: LTM) surged 8% following the announcement that the Committee on Foreign Investment in the United States (CFIUS) has completed its review of the company’s proposed acquisition by mining giant Rio Tinto (NYSE:) and found no unresolved national security issues.

The clearance marks a significant step forward for the deal, which was initially announced on October 9, 2024. With the CFIUS hurdle now cleared, Arcadium Lithium has also received merger control clearance in several other key jurisdictions, including Australia, Canada, China, Japan, South Korea, the United Kingdom (TADAWUL:), and under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in the United States. The United Kingdom has also granted investment screening approval.

Despite this progress, the acquisition is still awaiting investment screening approvals in Australia, Canada, and Italy, in addition to other customary closing conditions. Arcadium Lithium remains optimistic, expecting the transaction to finalize before mid-2025.

The company’s stock movement reflects investor confidence in the acquisition’s progress and the positive implications it holds for Arcadium Lithium’s future operations and growth. The clearance from CFIUS is a crucial step in international deals involving U.S. business interests, as it ensures that the transaction poses no threat to national security, which can be a significant concern in the mining and production of critical materials like lithium.

Investors are closely monitoring the remaining regulatory approvals, keenly aware that the successful acquisition by Rio Tinto could enhance Arcadium Lithium’s position in the global lithium market, a sector that is becoming increasingly important due to the rising demand for electric vehicles and renewable energy storage solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.