Rockwood Holdings buys Talison Lithium for C$724 mn

US specialty chemicals producer Rockwood Holdings Inc has agreed to acquire Australia-incorporated Talison Lithium Limited for approximately C$724 million ($729 million) aiming to strengthen the company's lithium business.

Lithium, the lightest of all metals, possesses a broad range of chemical and technical properties enabling it to be used in batteries for consumer electronics, electric bicycles and vehicles. It is also used in aerospace alloys, wind turbines, glass and ceramics.

Perth, Australia-based Talison is a leading global producer of lithium with projects in Australia and Chile. The company's shares are listed on the Toronto Stock Exchange.

Under the terms of the agreement, Rockwood will acquire all of the outstanding shares of Talison in an all-cash transaction for C$6.50 a share, which represents a 53-per cent premium to Talison's closing price on 22 August 2012 of C$4.24.

Princeton, New Jersey-based Rockwood is a leading global specialty chemicals and advanced materials company. Rockwood has a worldwide employee base of approximately 10,000 people and annual net sales of approximately $3.7 billion. Its stock is listed on the New York Stock Exchange.

Rockwood's chairman and CEO Seifi Ghasemi said, "The acquisition of Talison is the logical next step in further strengthening our lithium business and enhancing our capabilities.''