Liontown extends due diligence by a week for $4.2 billion buyout by Albemarle

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Liontown had earlier indicated that it has granted the U.S.- based chemical manufacturing company a four-week exclusive due diligence period to enable Albemarle to put forward a binding offer.

Albemarle’s due diligence is substantially complete and it requires a short extension, Liontown said.

Liontown had backed the buyout offer from Albemarle, the world’s largest lithium producer, which valued the company at about A$3 per share.

Hancock Prospecting, a firm controlled by local billionare Gina Rinehart, has now picked up a 19.9% stake in Liontown which might hamper the takeover attempts from the U.S. mining giant.

Albemarle needs 75% support from Liontown investors who vote on the deal to succeed with its bid.

($1 = 1.5591 Australian dollars)