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SQM’s (NYSE:SQM) $1B agreement to acquire Australian lithium miner Azure Minerals (OTCPK:AZRMF) could be in jeopardy, after Australian billionaire Gina Rinehart’s Hancock Prospecting said Friday it had bought an 18% stake in Azure, not far from the 20% level that would require a mandatory takeover offer.
Under the terms of its main offer structure, SQM (SQM) can pull out if a single shareholder acquires more than 19% of Azure (OTCPK:AZRMF).
Earlier this month, Rinehart ruined a bid for Liontown Resources by gradually building a 19.9% stake, ultimately enough to prompt Albemarle, the world’s largest lithium producer, to withdraw its A$6.6B takeover offer.
Speculation in Australian newspapers has suggested that Rinehart may be exploring a similar strategy to impede SQM’s (SQM) potential takeover of Azure (OTCPK:AZRMF).
