Shares in Arcadium Lithium PLC (NYSE:ALTM, ASX:LTM) rose 9% overnight as investors backed the US$6.7 billion cash takeover of the metals processing firm by Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF).
The deal, which is Rio’s biggest for seventeen years, now faces regulatory approval in the US where it will be a test of the new Trump administration’s attitude to foreign takeovers.
Chinese state-owned Chinalco has a 14.9% stake in Rio Tinto.
Arcadium also faces several lawsuits alleging misrepresentation, concealment and negligence over the deal, though it said 98% of shareholders had backed the deal.
Paul Graves, Arcadium’s chief executive, said: “Today’s vote of support by our shareholders confirms our shared belief that with Rio Tinto, we will be a stronger global leader in lithium chemicals production.
"Together, we enhance our capabilities to successfully develop and operate our assets while supporting the clean energy transition."
Arcadium’s jewel is said by analysts to be its lithium processing technology, though it also operates mines and counts Tesla, BMW and General Motors as customers.
Following the Arcadium deal, Rio will become the world’s third-largest lithium miner.
London-listed currently, Rio Tinto is coming under pressure from an activist shareholder to move its primary listing to Australia, in line with mining peer BHP.