Shares in Livent LTHM , the U.S.-based chemical manufacturer, gave up most of their gains to trade up just 1% in premarket action Wednesday, after it agreed to a $10.6 billion merger with Allkem AU:AKE , an Australian lithium miner. Allkem said an all-stock merger of equals would create a “leading global integrated lithium chemicals producer.” “Allkem and Livent, two global lithium chemicals companies, will combine their highly complementary range of assets, growth projects, and operating skills across extraction and processing under a vertically integrated business model with the scale and expertise to meet the rapidly growing demand for lithium chemical products,” said Allkem in a statement. The Transaction is expected to close by the end of calendar year 2023, said Allkem and then Allkem shareholders will own approximately 56% and Livent shareholders will own approximately 44% of the new company.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.