Rio Tinto share price rises on $10b Arcadium Lithium takeover deal
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The Rio Tinto Ltd (ASX: RIO) share price is rising on Thursday morning.
At the time of writing, the mining giant’s shares are up 1% to $119.22.
Why is the Rio Tinto share price rising?
Investors have been buying the miner’s shares this morning after it announced a deal to acquire Arcadium Lithium (ASX: LTM).
According to the release, the two parties have signed a definitive agreement under which Rio Tinto will acquire Arcadium Lithium in an all-cash transaction for US$5.85 per share (A$8.71 per share).
This represents a whopping 90% premium to Arcadium’s closing price of US$3.08 per share on 4 October 2024. The total value of the offer is approximately US$6.7 billion (A$10 billion).
