IGO Ltd has finally snared nickel producer Western Areas after shareholders waved through the contentious $1.3 billion deal, as the Perth-based battery metals player was swept up in a nasty sell-off across the lithium sector.

At a virtual meeting on Wednesday, Western Areas shareholders approved IGO’s $3.87 cash per share bid, despite the increased offer still being below the $4.04 to $5.23 range deemed fair by independent expert KPMG. Proxy adviser Institutional Shareholder Services had also expressed concern, but ultimately said shareholders should accept, noting that it was substantially higher than before merger talks being revealed by Street Talk in August 2021.