Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Stake in top Chilean lithium producer SQM put on block

Published 2015-12-18, 09:56 a/m
© Reuters. Stake in top Chilean lithium producer SQM put on block

SANTIAGO, Dec 18 (Reuters) - A stake in Chile-based SQM, one
of the world's top lithium producers, is up for grabs after an
indirect shareholder said it had begun a sale process of its
holding.
Oro Blanco ORO.SN said in a statement on Friday it had
decided after a consultation process to invite buyers to make an
offer for its entire holding in Pampa Calichera CALa.SN .
Oro Blanco holds a little over 88 percent of Pampa
Calichera, which in turn owns around 20 percent of SQM SQMa.SN
SQM_pb.SN SQM.N , a major producer of battery ingredient
lithium and an important supplier of iodine and other chemicals.
Such a sale might not be enough to cede control of SQM to a
new owner but would be a move in that direction. Current
controller Julio Ponce, the former son-in-law of late dictator
Augusto Pinochet, was forced to resign as SQM chairman earlier
this year after two separate scandals. A refreshed board has
said it wants to draw a line under the events and improve
corporate governance.
SQM's access to vast nitrate and lithium reserves in
northern Chile could attract a number of buyers. Canada's Potash
Corp POT.TO POT.N already owns about 30 percent in the dual
share structure of SQM, while Israel Chemicals ICL.TA has also
flagged interest in the Chilean company.
Electric car companies such as Tesla TSLA.O have
reportedly been visiting Chile as they seek to secure supplies
of lithium, a critical ingredient in car batteries.
Oro Blanco said that the sale process, overseen by Banco
Itau Argentina, should take about six months.
Shares in Oro Blanco rose 8.5 percent in Santiago on Friday
morning after the announcement, while SQM's Santiago-listed
shares were up 8.4 percent and its Nasdaq shares rose 9.3
percent.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.