Investing.com — Arcadium Lithium plc (NYSE: ALTM, ASX: LTM) shares rose 8% following the announcement that the Committee on Foreign Investment in the United States (CFIUS) has completed its review of the proposed acquisition by the 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 cleared, Arcadium Lithium also received merger control clearance in several other key jurisdictions, including Australia, Canada, China and Japan. , South Korea, United States Kingdom (TADAWUL:), and under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in the United States. The UK has also granted investment control approval.
Despite this progress, the acquisition is still awaiting investment appraisal approvals in Australia, Canada and Italy, in addition to other customary closing conditions. Arcadium Lithium remains optimistic and expects the transaction to be completed before mid-2025.
The company’s stock movement reflects investor confidence in the progress of the acquisition and the positive implications it has for Arcadium Lithium’s future operations and growth. CFIUS clearance is a crucial step in international agreements involving U.S. commercial interests, as it ensures that the transaction does not pose a threat to national security, which can be a major concern in the mining and production of critical materials such as lithium.
Investors are closely monitoring the remaining regulatory approvals, keenly aware that the successful acquisition by Rio Tinto could improve Arcadium Lithium’s position in the global lithium market, a sector that is becoming increasingly important due to the growing demand for electric vehicles and renewable energy storage solutions.
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