(Bloomberg) -- A bidding war for Millennial Lithium Corp. has ended with a fellow Canadian miner beating a Chinese suitor in the race to scoop up assets of a battery metal that’s crucial for powering electric vehicles.
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Lithium Americas Corp. agreed to buy its Vancouver-based counterpart in a $400 million deal that topped an earlier offer from Contemporary Amperex Technology Co. Ltd., the world’s largest EV battery maker. Lithium Americas agreed to pay C$4.70 for each Millennial share, payable in stock and C$0.001 in cash, the company said in a Wednesday statement. The offer is 0.4% lower than Millennial’s closing price Tuesday on the Toronto Stock Exchange, though is 47% higher than the average price of the year before attracting a takeover offer in July.
Read more: Lithium Prices Hit Records as Shortages Threaten Outlook for EVs
Millennial, which has lithium assets in Argentina, received three takeover offers in the past four months. The interest comes as prices for the silvery metal surge alongside a broad commodities rally, while a global push for more clean-energy sources has brightened demand for the metal. Companies along the EV supply chain are seeking to secure supplies of the key component for rechargeable cells, ranging from battery makers’ long-term contracts with producers to other miners snapping up lithium assets.
The Lithium Americas takeover is expected to close in January, pending regulatory approvals, the company said.
Millennial initially agreed to a C$353 million cash takeover by Chinese lithium giant Ganfeng Lithium Co. in mid July. CATL joined the fray with a C$377 million proposal that prompted Ganfeng to withdraw its bid in September. Millennial endorsed CATL’s C$3.85-a-share offer until Lithium Americas weighed in with an unsolicited superior proposal at the beginning of November.
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