exclusive - lithium producer albemarle eyes buying rival if ipo stumbles: source - where can i buy lithium batteries
(Reuters)-
Yabao company (ALB. N)
The world's largest producer of lithium can buy from FMC (FMC. N)
A source present said that if the smaller rival failed to make an initial public offering this fall, an executive told investors at an event in June.
The comments, which have not been publicly reported before, were made at a time of rapid growth and fierce competition in the lithium industry as Albemarle tries to capitalize on the surge in high demand
Like the technology battery used by Tesla (TSLA. O)
Electric vehicles such as type X.
Shares in Charlotte, North Carolina
US-based shares of Albemarle fell less than 1% to $95. 86 (74. 91 pounds)
On Wednesday, it was in line with the broader market.
Shares of the company have fallen by about 27% this year. Philadelphia-
The FMC, which is mainly a pesticide manufacturer, said in February that it will launch a $0. 5 billion initial public offering (ipo) in October to sell shares in its lithium business.
The new company will be named "Livent Corp", a drama about the lithium chemical symbol "Li.
"Livent's stock multiples will reflect a comparison of stock trading to expected earnings and Wall Street will keep a close eye on the company as it will be the first major stock trading company in the USS.
Lithium producers are on the market.
Eric Norris, Albemarle executive in charge of the company's global lithium business, told investors at a private dinner in Las Vegas in June, the success of the livint IPO will be good news for Albemarle as it shows that investors are interested in the industry
According to sources present at the meeting, "If the multiple is high, it will be good for Albemarle," he said.
But according to sources, he added: "If the price is low, we can buy the FMC" lithium business.
According to sources, Norris added that Luke Kissam, chief executive of Albemarle, expressed his views.
Albemarle can purchase Livent by making an offer to the board of directors of the new company, making plans directly to shareholders or seeking other avenues.
FMC declined to comment on the upcoming listing.
FMC shares rose slightly to $83.
Morning trading.
David Ryan, vice president of strategic and investor relations at Albemarle, will not confirm or deny any acquisition plans.
He said the company will be interested in how the market evaluates a position
A lithium producer“As Mr.
Norris, who attended the investor dinner, previously said that we believe that the fmc ipo is an interesting and important milestone for the industry because it will establish valuations for independent companies.
Ryan said in a statement to Reuters.
"As with any potential acquisition, Albemarle will take into account multiple data points and market conditions at the time to assess a target.
Albemarle, which produces more than 65,000 tons of lithium per year, has publicly stated in the past that it is interested in growing through acquisitions, but has never publicly mentioned the name FMC or Livent.
Adding Livent to its portfolio can help Albemarle stay ahead of the competition, including SQM in Chile (SQMa. SN)
China Tianqi Lithium company (002466. SZ)
By increasing production.
Lithium sales in lithium rose 46% in the second quarter to $107.
9 million, operating a lithium plant in Argentina, near Albemarle's own lithium plant in Chile, is expected to produce about 21,000 tons this year.
"This is not uncommon in the United States. S.
Competitors watch each other's ipo markets, "said Hillary Holmes, a lawyer at Gibson, Dunn and crucher law firm.
The Yabao Norris Women's Federation participated in the chief strategy officer of Yabao in January.
Earlier this summer, he was promoted to the head of the Albemarle lithium division.
Albemarle has also been seeking to keep top producers in the lithium market by investing millions of dollars in designing specialized types of products for electric vehicle batteries.
Around 500,000 electric vehicles were sold worldwide in 2016, and the United States estimates that by 2022 this figure is expected to grow seven times. S.
Energy Information Administration