Talison Lithium to get bought out Reuters) - Specialty chemicals producer Rockwood Holdings Inc (NYSE:ROC - News) said it would buy lithium producer Talison Lithium Ltd (Toronto:TLH.TO - News) for C$724 million ($729 million) in cash to strengthen its lithium business.
Rockwood said it will pay C$6.50 per Talison share — a 53 percent premium to the stock's Wednesday close on the Toronto Stock Exchange.
Rockwood, which has been betting on the increasing demand for lithium ion-based batteries, has said it expects battery-grade lithium products to show double-digit sales growth this year.
The company earlier this year said it would invest $140 million in a 20,000-metric-ton lithium production plant in Chile. Lithium business accounted for 14 percent of Rockwood's June quarter sales of $905.6 million.
Talison Lithium, headquartered in Perth, Western Australia, also operates in Chile.
Lazard advised Rockwood while Macquarie Capital in Australia and Canada are acting as financial advisers to Talison.
($1 = 0.9930 Canadian dollars)