Chinese battery producer Chengdu Tianqi Industry Group plans to outbid Rockwood Holdings (ROC.NYSE, R6H.FRA) to purchase shares in the Australian mining company Talison Lithium (TLH.TSE, T39.FRA), Bloomberg reported. Windfield Holdings, a unit of Chengdu Tianqi, is in the process of acquiring or has already acquired a 15% shareholding in Talison, according to a statement by Chengdu Tianqi released yesterday. The Chinese company will make a takeover bid for the remaining shares at a price that will trump Rockwood’s offer of US$6.50 (C$6.50) per share, the statement said. Talison mines ore that is used in battery-quality lithium. Chengdu Tianqi buys over 90% of its lithium materials from Talison, said Jonathan Lee, an analyst at Byron Capital Markets. “It’s basically vertical integration for them and securing their source of supply,” Lee said yesterday. Any takeover will be subject to approval by Australian regulators.
Categories