Specialty chemicals maker Albemarle withdrew its $4.3 billion offer to acquire battery minerals producer Liontown Resources last week.
The decision, which came as Albemarle was nearing the end of its exclusive due diligence process, was made based on “growing complexities” associated with the offer, the lithium developer said in the release.
The news followed Australia-based mining company Hancock Prospecting’s announcement that it had taken a 19.9% stake in Liontown, making it the company’s largest shareholder and complicating Albemarle’s offer, the Wall Street Journal reported.
Liontown is currently developing the Kathleen Valley lithium project in Western Australia, with production slated to begin mid-2024. The company calls the asset one of the most significant new lithium projects in development in the world.
Albemarle declined to comment further on the matter.
“Our engagement with the Liontown team has been meaningful and productive,” Albemarle CEO Kent Masters said in a statement. “We appreciate the level of cooperation we have received, and we thank the entire team for their efforts. That said, moving forward with the acquisition, at this time, is not in Albemarle’s best interests.”
Had the transaction gone through for Albemarle to buy the Australia-based producer, it would have strengthened the U.S. specialty chemical maker’s energy storage business. The deal would have also increased Albemarle’s presence in Australia, where it already operates mining assets in Wodgina and Greenbushes and energy storage facilities in Perth and Kemerton.
Albemarle has been focused on growing its Australia operations in recent months. In May, it announced plans to invest more than $1 billion to expand its lithium hydroxide plant in Kemerton.
The company also operates MARBL, a lithium joint venture with Australia-based mining services company Mineral Resources. On Wednesday, the two companies closed on an amended agreement in which Albemarle will take full ownership of the previously shared Kemerton plant for $400 million. The companies will each have 50% joint ownership of the shared Wodgina mine in western Australia, with Mineral Resources overseeing operations.
