Allkem: Merger news delivers unexpected boost

About the author:

Max Vickerson
Author name:
By Max Vickerson
Job title:
Date posted:
12 May 2023, 7:30 AM
Sectors Covered:
Industrials, New Energy

  • Allkem (ASX:AKE) is set to merge with Livent (NYSE:LTHM) in a 56/44 split that roughly aligns with each company’s market cap prior to the announcement. LTHM’s shares lifted ~5% overnight and AKE closed up 16%.
  • The appeal of the merger is in the extraction of synergies. Both companies have brine operations in Argentina and spodumene projects in Quebec. LTHM also uses more advanced brine processing techniques that could drive better performance at AKE’s projects.
  • We reduce rating to HOLD given the very strong performance today on a revised price target of (login to view).

Find out more

Download full research note

If you would like more information, please contact your adviser or nearest Morgans office. 

Request a call Find local branch

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

  • Print this page
  • Copy Link