Investing.com -- Shareholders of Arcadium Lithium have given the green light for a $6.7 billion sale to Australian mining heavyweight Rio Tinto (NYSE:RIO), as announced by the company on Monday.
This news was met with positivity in the stock market, with Arcadium's shares climbing over 2% in after-hours trading.
However, the path to the deal is not without its obstacles. Arcadium is currently dealing with legal challenges from a section of its shareholders.
These shareholders have lodged lawsuits against the company, accusing it of misrepresentation, concealment, and negligence in relation to the takeover deal. This information was disclosed by Arcadium in a regulatory filing earlier this month.
Earlier in the year, Rio Tinto stated its intention to acquire Arcadium at a price of $5.85 per share, which was paid in cash. This purchase price represented a nearly 90% premium on Arcadium's closing stock price on October 4, the day a potential deal was first reported by Reuters.
The acquisition will grant Rio Tinto access to Arcadium's lithium mines, processing facilities, and deposits located in Argentina, Australia, Canada, and the United States.
Additionally, Rio Tinto will also inherit Arcadium's customer base, which includes major automotive manufacturers such as Tesla (NASDAQ:TSLA), BMW (ETR:BMWG), and General Motors (NYSE:GM).
"We are confident that this transaction will provide future benefit to our customers, employees and the communities in which we operate, and I am excited by the path ahead," Paul Graves, the president and chief executive officer of Arcadium Lithium said in a statement.
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