Codelco Defends Lithium Deal Ahead of SQM Shareholder Meeting
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 24 2024
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Source: Bloomberg
- Chile's State Copper Company Defends Lithium Production Tie-Up with SQM: Codelco defended the proposed deal with SQM, stating it is transparent and beneficial for Chile. The state will receive a significant percentage of proceeds from new production.
- SQM Shareholder Meeting Requested by Tianqi Lithium Corp: SQM is holding a shareholder meeting requested by its second-largest shareholder, Tianqi Lithium Corp, seeking clarity and voting rights on the Codelco deal.
- Negotiations Update and Deal Approval: SQM management will provide an update on negotiations at the meeting, emphasizing that the deal only requires board approval. The agreement involves exchanging a majority stake in brine assets for extended operations.
- Tensions Between SQM and Chinese Shareholder Pose Risk to Deal: Tensions between SQM and Tianqi Lithium Corp add risk to the deal, potentially impacting production ramp-up plans. If the deal falls through, SQM may have to wind down mining operations post-2030.
- Restrictions on Sensitive Information for Tianqi Lithium Corp: Tianqi has faced restrictions on accessing sensitive information since acquiring a stake in SQM. The top shareholder of SQM is Julio Ponce.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
