Lithium & The Future, page-2670

SQM deal heading for difficulty article in FT today : Canada’s Nutrien has hit back against efforts by Chilean lithium producer SQM to “frustrate” the sale of its stake in the company to China’s Tianqi Lithium for $4bn calling it “extraordinary and self-serving.” The Canadian fertiliser producer said it is evaluating “all potential responsive actions,” following SQM’s public opposition to a deal struck between Tianqi and Chile’s antitrust regulator that paves the way for final regulatory approval. The deal is being closely watched in the global lithium market, since it will give Tianqi a 24 per cent stake in the world’s lowest-cost producer of the battery raw material, just as demand is escalating due to rising sales of electric cars. Global production of lithium is dominated by five companies including Albermarle, SQM, Tianqi, Ganfeng Lithium and FMC. Last week Tianqi agreed to a number of conditions with Chile’s antitrust regulator as a condition of its purchase of the stake, for a maximum of six years. This included a promise not to nominate any of its own directors or staff to SQM’s board or request any commercially sensitive information. Chile’s top competition tribunal has until October 4 to approve the deal. The transaction has already been approved by China’s competition authorities, according to Nutrien. SQM said on Thursday the deal should be rejected since it could hinder competition in the global lithium market and does not prevent access to sensitive information. “SQM is in a situation where it will have to receive a direct competitor as a shareholder,” it said. “Which although it is not illegal, presents risks and challenges to free competition.” In an emailed response to questions Tianqi defended the agreement. “The remedies and conditions of the agreement . . . go far beyond what the law in Chile requires for an operation of this nature, considering only a minority stake is being acquired,” it said. “Tianqi Lithium has agreed to offer these remedies as a clear signal of our respect to Chile and its institutions, as well as a commitment to ensuring the highest level of corporate governance practices are put in place at SQM.”