Rio Tinto to buy Arcadia Lithium for $6.7bn

(Sharecast News) - Rio Tinto said it had struck a deal to buy Arcadium Lithium for $6.7bn, making it a major producer of a key component of electric vehicle batteries. The mining giant on Wednesday said it was offering $5.85 a share in cash - a 90% premium to the stock's closing price at the end of last week.

"Acquiring Arcadium Lithium is a significant step forward in Rio Tinto's long-term strategy, creating a world-class lithium business alongside our leading aluminium and copper operations to supply materials needed for the energy transition," said Rio Tinto chief executive Jakob Stausholm.

Reporting by Frank Prenesti for Sharecast.com