Albemarle Corporation [NYSE: ALB] disclosed that its subsidiary Albemarle Lithium UK Limited, has inked a definitive agreement to purchase all of the outstanding equity of Guangxi Tianyuan New Energy Materials Co., Ltd. Since its inception in 2017, Tianyuan’s operations include a recently built lithium processing plant strategically located near the Port of Qinzhou in Guangxi.
The acquisition of Tianyuan is entirely aligned with its strategy to continue its profitable growth consistent with customer demand. This acquisition will be an important part of its next wave of projects intended to expand its conversion capacity in a capital-efficient manner in the coming years. As the global transition to cleaner energy quickly develops, this additional lithium capacity will give the firm an opportunity to support its customers attain their growth and sustainability ambitions.
Shares of Albemarle Corporation [NYSE: ALB] surged 1.61% as the firm gained +3.53 at the time of writing on Thursday. The share of the firm has oscillated between the 52-weeks low and high range of $84.57 and $253.10, respectively. ALB has a total market capitalization of $25. 92 billion at the time of writing.
In accordance with the terms and conditions of the agreement, Albemarle will purchase all outstanding equity from Tianyuan’s shareholders for nearly USD $200 million. It depends on certain adjustments. Albemarle anticipates that the transaction, which is dependent on certain customary closing conditions, to execute in early 2022.