Global lithium operator Albemarle (NYSE:ALB) divested its 4% stake in Liontown Resources following a failed takeover bid.

Per Financial Review’s report, JPMorgan‘s equity capital markets team offloaded $120 million worth of Liontown’s stock at floor prices, with shares dropping 1.45% and closing the day at A$1.36.

Owing mainly to Albemarle’s interest, Liontown’s share price traded as high as A$3.15 in June 2023.

Yet the failed takeover bids occurred in multiple stages, with Albemarle facing resistance at various premium prices. Despite multiple rejections, Albemarle was granted a look at Liontown’s books with a final bid of A$3 in September.

However, the opposing stake built by Gina Rinehart, Australia’s wealthiest person, rendered Albemarle’s scheme bid ineffective. This stand-off led to the withdrawal of the A$6.6 billion takeover proposal in mid-October, eventually sending the price as low as A$1.24 by early December.

At Lionheart's annual general meeting in November, CEO Tony Ottaviano stated that he was unaware of Rinehart's overall strategy.

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Liontown’s main projects, Kathleen Valley and Buldania, are critical to the company’s future endeavors. The Kathleen Valley Lithium Project, situated nearly 60km north of Leinster in Western Australia, is a Tier-1 battery metals asset with one of the world’s largest and highest-grade hard rock lithium deposits.

The project is expected to produce around 500,000 tons of 6% lithium oxide concentrate annually, along with Tantalum Pentoxide.

The Buldania project, located south of Kalgoorlie in Western Australia, has confirmed mineral resource estimates of 15 million tons of 1.0% Lithium oxide (Li2O). Despite the setback in Albemarle’s acquisition plans, Liontown remains actively engaged in advancing its lithium projects, contributing significantly to the burgeoning lithium industry.

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