Lithium proposed $4b merger
Orocobre Limited (ASX: ORE) and Galaxy Resources Limited (ASX: GXY) have agreed to a proposed $4b merger of equals that would create the fifth largest lithium chemicals company in the world. The proposed merger will create a portfolio of assets across brine and hard rock in Canada, South America, Japan and Australia, with production capacity around 40,000tpa LCE (lithium carbonate equivalent), as well as vertical integration across the supply chain. A new name for the merged is yet to be determined, with the group’s head office in Buenos Aires, Argentina, a corporate headquarters on the Australian east coast and an office in Perth. Galaxy chairman Martin Rowley says the transaction has the potential to provide significant value for Galaxy and...
