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Gina Rinehart has increased her stake in Liontown Resources as Australia’s richest man attempts to intervene in a proposed acquisition of a lithium developer by Albemarle, the world’s largest battery metals producer.
Rinehart’s Hancock Prospecting increased its stake in Liontown to 18.36% from 16.69%, according to stock market filings on Tuesday, as the iron ore and agriculture giant seeks to get involved. Commodity for electric vehicle batteries.
The Australian billionaire has put Albemarle’s proposed $4.3 billion takeover of Liontown in jeopardy as lithium prices have fallen nearly 70% this year due to rapidly growing supply and falling demand from China.
Albemarle would need at least 75% of voting shareholders to back the deal for it to go through, making it possible for Reinhardt to block takeover proposals from the U.S. company as many investors typically don’t vote.
Rinehart rose to prominence by reviving Hancock Prospecting, the iron ore business founded by his father Lang Hancock in 1955, and turning it into Australia’s largest private company.
While Reinhart — nicknamed the “Iron Lady” for her steely personality and the commodities that form the cornerstone of her fortune — is clearly working on diversifying into lithium, she’s staying mum on her exact intentions.
Industry analysts have speculated that she may hope to get a higher offer from Albemarle – which said its fourth offer in September was the “best and final” – to set up a joint venture with the global lithium leader business, collaborate with others, and even take action. Acquired Liontown on its own.
Under Australian takeover laws, if Reinhardt’s stake exceeds 19.9%, she will be obliged to make a competitive bid for Liontown, which is developing a large underground lithium mine in Western Australia.
However, Hancock has a long history of joint ventures on nearly every asset it owns, making some form of partnership the most likely outcome, with Albemarle a prime candidate due to its expertise in chemical processing. The ideal partner.
Hancock said last week that it “remains open to future nominations to Liontown’s board of directors, particularly if its strategic stake continues to increase to 19.9%,” suggesting that the company is unlikely to opt for a full acquisition at this time.
In his first public statement about Liontown in September, Hancock said the company could “join other Liontown shareholders to contribute to the future direction of the lithium company, including potential investment opportunities for downstream value-add in Western Australia”.
Liontown’s other major shareholders are Chairman Tim Goyder and Albemarle, while the remaining publicly disclosed shareholders are passive funds that are not involved in the operation of the mine.
Albemarle’s exclusivity period with Liontown is set to end Wednesday, giving Albemarle time to decide whether to turn its non-binding proposal into a final offer.
Reinhardt’s move follows the reorganization of a joint venture between Chris Ellison and Albemarle. Chris Ellison is managing director of mining group Mineral Resources and a collaborator on the Australian mining tycoon’s previous deals.
As part of the revised deal, Allison will abandon its investment in Chinese lithium refineries and instead try to build its own lithium processing plant, preferably in Australia, Allison said on the company’s earnings call.
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