News: AKE Allkem shareholders set to vote on Livent's $10.6 bln merger bid

Investors of Australian lithium producer Allkem (AKE) will vote on Tuesday whether to accept a $10.6 billion merger offer from U.S. giant Livent LTHM.N that would create one of the world's largest lithium companies.

Livent last week said it had received all regulatory approvals for the deal to proceed that will create a company called Arcadium Lithium.

Under the deal, Allkem shareholders will get one share in Arcadium Lithium for each of their shares, and the company will ultimately own 56% of the new firm.

Livent shareholders will get 2.406 shares in the new firm for each existing share and Livent CEO Paul Graves will take the top job.

The new company will be the world's third-biggest producer of the key metal used in electric vehicle batteries, behind U.S.-based Albemarle ALB.N and Chile's SQM SQMA.SN .

The transaction has been recommended by independent experts in a report compiled by financial advisors Kroll. Major proxy advisory firms have also recommended investors vote in favour of the deal.

Livent's Graves told Reuters in November the new company would be keen to expand its existing asset base in Western Australia's world-class lithium districts.