Sep 14, 2018 (China Knowledge) - Chile’s Sociedad Quimica Y Minera (SQM) has rejected the terms agreed upon between Chile’s anti-trust regulator and Tianqi Lithium. The agreement would allow Tianqi Lithium to buy up to 25% of SQM. It has cited insufficient measures put in place to limit Tianqi’s access to its commercially sensitive information.
As per previously agreed upon terms, Tianqi would be unable to name one of its executives or employees onto the SQM board and had to notify regulators of any lithium-related deals between SQM or its top competitor Albemarle. The deal is subject to country’s antitrust court’s approval.
Tianqi Lithium had previously filed for an initial public offering (IPO) on the Hong Kong stock exchange hoping to raise USD 1 billion to finance its purchase of a USD 4.07 billion stake in SQM. Tianqi is the world’s number 2 lithium producer by sales and SQM is the world’s number 2 lithium miner.
Lithium is a key element for rechargeable batteries which are used in electric cars. Demand for lithium is expected to grow by 19.8% annually up to 2027 due to the growing sales of electric vehicles and use of rechargeable batteries to store renewable energy.
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