By Tom Daly

New Delhi: Chinese company Ganfeng Lithium Co Ltd announced on Friday that it would acquire Millennial Lithium Corp, an Argentinian company, for around C $ 353 million ($ 280 million), extending a series of deals with one of the world’s largest producers of white metal.

Prices for lithium, a key ingredient in electric vehicle batteries, have risen more than 65% year-to-date in China amid rising demand after a three-year decline.

Ganfeng GFL International’s unit offer at C $ 3.60 per share represents an 8.4% premium over Vancouver-based Millennial’s closing price of C $ 3.32 on Thursday, said the company in a deposit on the Shenzhen Stock Exchange.

Millennial recommended that shareholders back the offer, which it said has unanimous board approval and the backing of its largest investor.

The deal, which is expected to be finalized in the fourth quarter of 2021, offers “a very attractive opportunity for Millennial shareholders to realize full liquidity at a substantial premium to the current share price,” said CEO Farhad Abasov. .

So far this year, Ganfeng has agreed to buy the shares he does not already own in Mexican company Bacanora Lithium for $ 264.5 million, as well as stakes in a lithium mine in Mali and a lake. salted in China for $ 130 million and 1.47 billion yuan ($ 227 million), respectively.

Millennial has two non-producing lithium brine projects – Pastos Grandes and Cauchari East – in northern Argentina, near Ganfeng’s existing operations in the country, which include a joint venture with Lithium Americas Corp.

Ganfeng said this week that he expects first-half net profit to increase by 922.5% year-on-year to 1.6 billion yuan, after previously forecasting an increase of 411.2 to 666.9%, the rise in lithium prices helping to finance its expansion. plans.