China's Chengdu Tianqi gets Australian approval for acquiring Talison Lithium

Australian lithium producer, Talison Lithium yesterday said that China's Chengdu Tianqi Industry Group Co has received Australian regulatory approval for its proposed takeover of Talison, two days after rival suitor Rockwood Holdings decided not to enter into a bidding war.

Toronto Exchange-listed Talison also said it was continuing discussions with Chengdu and its advisers on its C$806 million takeover offer tabled by Tianqi's wholly-owned Australian subsidiary Windfield Holdings Pty Ltd.

The announcement comes two days after Princeton, New Jersey-based Rockwood  said that it would not enter into a bidding war since it has received the Australian regulatory approval for its agreed C$724 million ($725 million) acquisition of the Perth-based lithium producer.

Tianqi, which specialises in lithium, mining and agricultural machinery, last week acquired a 16.11-per cent stake in Talison and a few days later launched a C$7.15-a-share bid for the remaining shares, valuing the  lithium producer at C$806 million. (See: China's Chengdu Tianqi launches $803-mn bid for Australia's Talison Lithium)

Its offer is 65 cents or C$82 million higher than that of Rockwood. Tianqi said it has signed commitment letters for funding the deal from China Development Bank and an ADM Capital advised lender.

Two days earlier, it said that it would acquire another 3.88 per cent, which would take its total holding to 19.99 per cent.