Orocobre (ORE) $6.55 & Galaxy Resources (GXY) $3.83

ORE +5.65%  & GXY +6.09%: The two lithium companies announced a planned merger today, with Orocobre set to absorb Galaxy in a $4b deal. Galaxy shareholders will receive 0.569 ORE shares for each GXY share held at implementation, resulting in a 46/54 split between GXY & ORE shareholders respectively in the combined entity. The premise around the deal lies with the many synergies between the companies, particularly around the key assets which are both in Argentina. Additionally, the deal increases the ability of the combined entity to raise funds in order to develop exploration assets within the respective portfolios. Shares in both companies were higher today. We are bullish the space over the medium term and suspect the deal may present an opportunity to re-enter ORE, a position we recently sold in the Emerging Companies Portfolio.

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Orocobre (ORE)

LAST UPDATED 19/04/2021 16:33

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Orocobre (ORE)

LAST UPDATED 19/04/2021 16:33