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The stock is at $142.65, up $3.70. We're still looking for $160.
Here's the press release via the Wall Street Journal:
We have a lot of posts on lithium, if interested use the Search Blog box.-- Provides ownership in the world's largest and richest spodumene source of lithium -- Strengthens further ROC's #1 position as a leading global integrated producer of lithium compounds and chemicals -- Delivers immediate and significant accretion to ROC's 2014 earnings per share -- Enables a partnership with Tianqi, China's leading lithium company PRINCETON, N.J.--(BUSINESS WIRE)--December 02, 2013--Rockwood Holdings, Inc. (NYSE:ROC) announced today that it entered into a joint venture ("JV") with Chengdu Tianqi Industry Group ("Tianqi") giving Rockwood a 49% ownership interest and Tianqi a 51% interest in Talison Lithium Pty Ltd. This transaction is expected to close during the first quarter of 2014, following receipt of regulatory approvals.
At close, it is expected that Rockwood and Tianqi will contribute equity of $196 million and $204 million, respectively. In addition, Rockwood will also provide to the joint venture a two-year secured loan of up to $670 million at 8% interest. Rockwood will grant Tianqi a three-year call option to invest from 20% to 30% in the equity of Rockwood Lithium GmbH, the European arm of Rockwood's global lithium business, which will be valued at 14x the last twelve months Adjusted EBITDA.
Proceeds to the joint venture will be used to pay off existing debt and equity holders including Tianqi Group HK Co., Limited (a subsidiary of Tianqi) and Leader Investment Corporation (a subsidiary of China Investment Corporation). Rockwood is expected to fund its investment in the joint venture from cash on hand.
"With this acquisition, we have secured access to another significant lithium reserve, in addition to our current resources in the U.S. and Chile," said Seifi Ghasemi, Chairman and Chief Executive Officer. "Further, not only does this complement our core lithium business, but it also meets with all of our prior stated financial and strategic objectives for allocation of capital in a disciplined manner to enhance economic value for shareholders."
Lazard acted as Rockwood's financial advisor and Clifford Chance as legal advisor....MORE
