SYDNEY — Albemarle scrapped its proposed $ 4.16 billion takeover of Liontown Resources, citing the difficulty of completing the deal following the intervention of Australia’s richest woman.
Liontown on Monday said that Albemarle ALB, -4.34% withdrew its cash offer of 3.0 Australian dollars (US$ 1.89) per share. Australian billionaire Gina Rinehart’s Hancock Prospecting last week announced it had taken a 19.9% equity stake in Liontown LTR, -2.79%.
“Albemarle has advised Liontown that its decision to withdraw its proposal was due to the growing complexities associated with executing the transaction,” Liontown said in a market filing.
Liontown, which is developing one of the largest and highest-grade hard rock lithium deposits in the world, said that Albemarle had confirmed a favorable view of its Kathleen Valley project and the Australian company’s proposal.
Albemarle’s decision came after it asked for an extra week to look over Liontown’s books following Hancock’s move. On Sept. 11, the ASX-listed company granted Albemarle four weeks to examine its books following a fresh takeover proposal.