European Lithium shares soar following USD835m Nasdaq-listed acquisition offer
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The news: Small-cap lithium exploration and development company European Lithium has seen its share price surge after receiving an all-scrip non-binding acquisition offer worth $1.2 billion from Nasdaq-listed Critical Metals Corp.
The numbers: At 1:42pm AEST, shares in European Lithium had lifted 50.9% to 43 cents per share. This is short of the 58 cents per share implied value — a 137% premium on the value of European Lithium shares at last close — when considering Critical Metals’ shares undisturbed price on 22 April.
Critical Metals said the total aggregate consideration payable to European Lithium equity holders was about USD835 million ($1.2 billion).
Under the terms of the non-binding indicative agreement, Critical Metals will pay European Lithium shareholders 0.035 shares in the Nasdaq-listed company for each share they own in the ASX-listed company.
The context: The deal is proposed to be completed by scheme of arrangement and would result in European Lithium shareholders holding about 45% of the combined company.
European Lithium already holds a 34% interest in Critical Metals. The consolidation of the two companies would cut out compliance costs related to the existing ownership stake and would consolidate ownership of the Tanbreez Rare Earths project in southern Greenland.
The two companies also have significant overlaps in board membership. European Lithium’s independent board committee believes the non-binding agreement is in the best interest of shareholders but is continuing to evaluate the merits of the acquisition proposal.
Critical Minerals and European Lithium are negotiating exclusively “with a view to complete due diligence and execute a binding scheme implementation deed by 7 May 2026” according to European Lithium.
What they said: “The combination will enable EUR shareholders to directly own interests in Critical Metals Corp. which will be strategically positioned as the isle owner of the Tanbree rare earth project in Greenland and will benefit from substantial cash balances and a portfolio of critical minerals development opportunities,” independent board committee chair Michael Carter said.
Editor’s note: This story and headline have been edited to provide details on the valuation of the deal.
The sources: ASX, Critical Minerals Corp. media release
