Allens has advised Livent on its proposed merger with Allkem to form an AU$15.7 billion global lithium chemicals producer.
Announced on 10 May, the all-stock merger of equals is the latest in a succession of large M&A transactions to secure supply of lithium and other critical minerals.
Allens has also recently advised ASX-listed Liontown in responding to takeover proposals from NYSE-listed Albemarle Corporation. On 28 March, Liontown announced that it had received and rejected an unsolicited proposal from Albemarle Corporation at AU$2.50 per share, valuing Liontown at AU$5.5 billion, after having rejected two earlier unsolicited proposals from Albermarle.
Allens' Head of Public M&A, Guy Alexander, who is leading the Allens team acting on both of these transactions, said: 'One of the main themes we are currently seeing in global M&A is the drive to secure supply of lithium and other critical minerals, and, more specifically, the drive towards vertically integrated business models across the critical minerals value chain.
'There is strong government support in the US (Inflation Reduction Act) and the EU (Critical Raw Minerals Act) to diversify global battery supply chains, and this presents valuable opportunities for "qualified" battery material providers in Tier 1 jurisdictions such as Australia.
'There is also a mid-term forecast lithium market deficit, which is expected to grow out to 2040, driven by significant demand and tight supply.
'These factors are likely to continue to drive interest in this sector over the coming years,' Guy said.
Allens legal team
M&A
Guy Alexander (lead Partner); Elise Blume (Senior Associate); Dave Filov (Counsel); Bryn Hardcastle (Partner); Andrew Wong (Counsel)
Tax
Ellen Thomas (Partner); Adrian Chek (Partner); Jay Prasad (Managing Associate); Tom Tian (Managing Associate)