Albemarle gets more time to assess Liontown

The news: Takeover target Liontown Resources has agreed to extend an exclusive due diligence period for its suitor, US battery chemicals giant Albemarle.

The numbers: Liontown said its board had agreed to extend Albemarle’s exclusive due diligence period by seven days, after the US company sought more time beyond the initial four week term. Liontown shares closed at $2.92 on Wednesday, below Albemarle’s offer price of $3 a share.

The context: The decision comes as Gina Rinehart’s Hancock Prospecting lifted its stake in Liontown further to 19.9%. It is now Liontown's largest shareholder but has shown no intention of launching a rival takeover bid. Hancock can potentially block Albemarle's bid for Liontown, which is developing the Kathleen Valley project in WA, one of the world’s biggest lithium projects. It has signalled the intention to influence the company’s overall future direction and said it remained open to nominating directors to Liontown’s board in the future.