Rio Tinto should buy up Arcadium Lithium, the New York-listed lithium producer which acquired Australia’s Allkem in a mega-merger this year, instead of pursuing its own efforts to build out a battery metals business, Citi brokers say.
In a note to clients, the Wall Street investment bank’s analysts said buying Arcadium – which has a market capitalisation of $US3.96 billion ($5.86 billion) – “could be a more economical option than developing its own lithium assets”.
Tom Richardson writes and comments on markets including equities, debt, crypto, software, banking, payments, and regulation. He worked in asset management at Bank of New York Mellon and is a member of the CFA Society of the UK as a holder of the Investment Management Certificate. Connect with Tom on Twitter. Email Tom at tom.richardson@afr.com
