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SQM (Sociedad Química y Minera de Chile) and Hancock Prospecting → Azure Minerals

completed
Deal announced2023-12-18
BuyerSQM (Sociedad Química y Minera de Chile) and Hancock Prospecting
SellerAzure Minerals
SectorMining
ValueA$1.7B
Deal typeM&A

Chilean lithium giant SQM and Gina Rinehart's Hancock Prospecting formed a joint bid vehicle, SH Mining, to acquire ASX-listed Azure Minerals — owner of 60% of the Andover lithium project in Western Australia's Pilbara — via a scheme of arrangement at A$3.70 cash per share, valuing the company at approximately A$1.7 billion.

Why the buyer wanted it

SQM and Hancock sought direct ownership of the Andover lithium-nickel-copper-cobalt project to secure a major new lithium supply source in Western Australia.

Why the seller agreed

The joint SQM/Hancock offer topped SQM's earlier solo proposal, representing a 64% premium to Azure's 10-day volume-weighted average price before the original SQM deal was made public.

Stock reaction

Azure Minerals shares rose over 2% on the news of the sweetened joint bid, trading as high as A$3.71.

Deal mechanics

Buyer's advisors

King & Wood Mallesons (legal, to Hancock Prospecting)

Seller's advisors

Barrenjoey Capital Partners (financial); Corrs Chambers Westgarth (legal)

Deal structure

Scheme of arrangement via jointly-owned bid vehicle SH Mining — A$3.70 cash per Azure share

Regulatory approval

FIRB approval (granted 30 April 2024, after this deal's announcement)

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