Lithium Producer Albemarle Eyes Buying Competitor If Ipo Stumbles -Source (Alb)

ALB $96.38 downward 0.19 (-0.20%)
I don't know if this acquisition would necktie inwards to Albemarle's efforts to motion upwards the value chain exactly the stock seems to receive got bottomed amongst those $88 - ninety prints dorsum inwards early on April:

FinViz

From Reuters:

Albemarle Corp, the world's largest lithium producer, could purchase FMC Corp's lithium sectionalization if the smaller rival's initial populace offering stumbles this fall, a senior executive told investors at an effect inwards June, according to a root who attended.

The comments, which receive got non previously been publicly reported, come upwards at a fourth dimension of rapid increase in addition to cutthroat contest across the lithium sector every bit Albemarle seeks to tap into surging need for high-tech batteries similar those used inwards Tesla Inc's Model X in addition to other electrical vehicles.

Shares of Charlotte, North Carolina-based Albemarle savage less than 1 per centum to $95.86 on Wednesday, inwards delineate amongst broader markets. The company's stock has lost nearly 27 per centum of its value this year.

Philadelphia-based FMC, primarily a pesticides maker, said inwards Feb it would launch a $500 1 M m initial populace offering inwards Oct of a stake inwards its lithium business. The novel fellowship volition endure named "Livent Corp," a play on the chemic symbol for lithium, "Li."

Livent's stock multiple, which volition reverberate how the stock trades compared to its expected earnings, volition endure closely watched past times Wall Street every bit the fellowship would endure the get-go major the United States of America lithium producer to become public.

Albemarle executive Eric Norris, who heads the company's global lithium business, told investors at a somebody June dinner inwards Las Vegas that a successful Livent IPO would endure expert intelligence for Albemarle past times showing strong investor appetite inwards the sector.

"If the multiple is high, expert for Albemarle," he said, according to the root who attended.

But he added: "If it is low, nosotros tin purchase FMC" lithium operations, according to the source.

Norris added that Luke Kissam, Albemarle's main executive, shared his opinion, according to the source.

Albemarle could purchase Livent past times approaching the novel company's board amongst an offer, past times taking its invention straight to shareholders or past times pursuing other paths.

FMC declined to comment, citing the pending IPO. Shares of FMC rose slightly to $83.19 inwards morn trading.

David Ryan, Albemarle's vice president of corporate strategy in addition to investor relations, would non confirm or deny whatever acquisition plans. He said the fellowship would endure interested inwards how the marketplace values a stand-alone lithium producer.

"As Mr. Norris, who attended the investor dinner, has stated previously, nosotros hold the FMC IPO is an interesting in addition to of import milestone for the manufacture because it volition flora a valuation for a stand-alone lithium company," Ryan said inwards a disputation to Reuters. "Like whatever potential acquisition, Albemarle would evaluate a target considering multiple information points in addition to marketplace atmospheric condition at the time."

MARKET STRATEGY

Albemarle, which produces to a greater extent than than 65,000 tonnes annually of lithium, has said publicly inwards the past times that it would endure interested inwards growing through acquisitions, exactly never mentioned FMC or Livent publicly past times name....MUCH MORE

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