Albemarle Corporation → Liontown Resources
withdrawnUS lithium giant Albemarle made a series of escalating non-binding proposals to acquire ASX-listed lithium developer Liontown Resources (owner of the Kathleen Valley project), reaching A$3.00 cash per share (A$6.6bn equity value) in early September 2023, before withdrawing the offer entirely on 16 October 2023.
Albemarle sought to secure a major new lithium supply source in Western Australia to expand its global lithium chemicals business.
Liontown's board had indicated it would support a A$3.00/share proposal subject to due diligence, viewing it as attractive value for shareholders, but the deal never reached a binding scheme.
Liontown shares plunged more than 34% to a seven-month low of A$1.82 the trading day after Albemarle withdrew its bid on 16 October 2023, their worst one-day fall in nearly nine years.
Commentators attributed the bid's collapse directly to Gina Rinehart's Hancock Prospecting acquiring a 19.9% stake, seen as sufficient to block the 75% shareholder approval Albemarle needed.
Deal mechanics
Deal collapsed before requiring formal FIRB/shareholder approval; Albemarle cited "growing complexities" after Hancock Prospecting built a 19.9% blocking stake in Liontown.