Lynas Rare Earths confirms merger talks with US rival

The news: Rare earths producer Lynas has confirmed it has been in talks for a potential merger with US-based rival MP Materials Corp.

The numbers: Lynas shares are down 37% over the last 12 months, currently valuing the company at $5.4 billion. The NYSE-listed MP Materials is valued at $4.7 billion.

The context: Lynas confirmation comes after the Australian Financial Review reported the two companies had been working on a deal to bring together the world’s two biggest non-China producers of rare earths.

What they said: Lynas said in a statement to the ASX it had held confidential discussions with MP Materials regarding a potential deal, but that these discussions are not ongoing. “Lynas continues to seek opportunities to use our proven expertise to build scale, improve market functioning and add value for shareholders,” it said.