On May 10, 2023, Allkem and Livent signed a definitive agreement for an all-stock merger of equals, creating a leading global lithium chemicals producer valued at $13.99 billion (US$10.6 billion). The merger aims to combine their complementary assets and expertise, enhancing scale and global capabilities to meet growing lithium demand for electric vehicles and energy storage, with a significant focus on operations in Canada.

The combined company is expected to generate $2.51 billion (US$1.9 billion) in revenue and $1.58 (US$1.2 billion) in adjusted EBITDA based on 2022 figures. Significant synergies, including $165 million (US$125 million) in annual operating savings and $264 million (US$200 million) in one-time capital savings, are anticipated due to the geographic proximity of assets in Argentina and Canada. The merger will also strengthen the supply chain and increase operational flexibility.

Upon completion, Allkem shareholders will own approximately 56% of the new entity, while Livent shareholders will hold 44%. The combined entity, referred to as NewCo, will be incorporated in the Bailiwick of Jersey with corporate headquarters in North America and corporate residency in Ireland.

Legal advisors for Livent were Davis Polk & Wardwell LLP and Allens, while Allkem was advised by King & Wood Mallesons and Sidley Austin LLP. Fasken advised Allkem with regard to Canadian securities law and regulatory aspects. Financial advisors included Gordon Dyal & Co., UBS Securities Australia Limited, and Morgan Stanley & Co. LLC. The transaction is expected to close by the end of 2023, pending regulatory and shareholder approvals.