Albemarle Backs Out Of Acquisition Offer For Australia's Liontown Resources

Mining giant Albemarle Corporation ALB said it will not pursue a binding agreement to purchase Liontown Resources Ltd. LINRF and has withdrawn its non-binding offer to Liontown's Board of Directors. 

Liontown Resources is a battery minerals producer based in Australia and owns one of the world's richest lithium deposits, essential for manufacturing electric vehicles and smartphones.

The decision comes as Albemarle nears the end of its exclusive due diligence process.

Albemarle cited the growing complexities associated with the proposed transaction as a factor in its decision.   

Related: Albemarle's Bold Move: Offers $4.3B For Lithium Miner Liontown Resources

Also, in a turn of events, Australian billionaire Gina Rinehart ramped up her investment in Liontown, providing her with enough leverage to block Albemarle's takeover, Bloomberg reported.

The report added Gina's raised stake of 19.9% has boosted her influence over Liontown Resources.

"We appreciate the level of cooperation we have received, and we thank the entire team for their efforts," said CEO Kent Masters. "That said, moving forward with the acquisition, at this time, is not in Albemarle's best interests." 

Albemarle is one of Australia's biggest lithium investors, with mining assets at Wodgina and Greenbushes, and with the Kemerton lithium hydroxide plant, which is currently undergoing a significant expansion. 

Price Action: ALB shares traded higher by 2.36% at $167.23 in premarket on the last check Monday.