Lithium Miners Orocobre, Galaxy Announce $4 Billion Merger
Two of Australia’s leading lithium miners are joining forces to capitalise on the pending electric vehicle (EV) boom, after Brisbane-based Orocobre and Perth-based Galaxy Resources announced a merger of equals.
With an expected combined market capitalisation of $4 billion, the merger would make Orocobre the world’s fifth-largest lithium chemicals company.
Under the proposed scheme, Orocobre would acquire 100 per cent of shares in Galaxy by giving up 45.8 percent of shares in the enlarged group.
The move comes amidst a rebound in lithium prices since late 2020 and an international push for battery-based energy and transport solutions.
This has been buoyed by carmakers, European subsidies and the Biden Administration’s ambitious goals in the US for an EV transition.
The new company’s head office will be in Buenos, Argentina – but its corporate headquarters will be on the Australian east coast, along with an office in Perth.