Albemarle ditches $6.6b bid to take over Liontown Resources

The news: US battery chemicals giant Albemarle has abandoned its $6.6 billion takeover bid for Liontown Resources, citing “growing complexities”.

The numbers: Liontown shares are currently in a trading halt as the company finalises funding for its Kathleen Valley project. The shares closed at $2.79 each on Friday, below Albemarle’s offer price of $3 a share.

The context: Albemarle last week sought a seven-day extension to an exclusive due diligence period for Liontown. But its takeover bid for the WA based lithium explorer had come under a cloud after Gina Rinehart’s Hancock Prospecting lifted its stake in Liontown to 19.9%, becoming its largest shareholder. Hancock had shown no intention of launching a rival takeover bid but signalled the intention to influence the company’s overall future direction. Liontown is developing the Kathleen Valley project in WA, one of the world’s biggest lithium projects.