Australian Lithium Miner Accepts Titan's A$333 Million Takeover Offer

en.Wedoany.com Reported - Australian lithium developer Global Lithium Resources (ASX: GL1) has agreed to accept a A$333 million (US$237 million) all-cash takeover offer from UAE-based Titan Australia Mining Pty Ltd. Following the announcement, the company's shares resumed trading after a halt, surging as much as 62.4% intraday on Tuesday to A$1.08 before closing at A$0.995, a gain of nearly 50%, marking its highest close since early January 2024.

Titan Australia, a subsidiary of Titan Lithium, is offering A$1.15 per share, representing a premium of nearly 73% to Global Lithium's closing price of A$0.665 on September 18.

Liz Humphry, a partner at Clifford Chance who is providing legal advice to Titan, said the proposed acquisition reflects growing UAE investment in Australia's critical minerals sector and demonstrates the important role cross-border capital can play in building resilient, diversified global supply chains, in line with government policy.

Upon completion of the transaction, Titan will gain access to Global Lithium's Manna project in Western Australia, as the UAE company builds a vertically integrated business spanning lithium resources and downstream processing. Amid a period of lithium price volatility, the deal also provides cash certainty for Global Lithium shareholders and removes some of the financing and construction risks associated with developing Manna.

On the financing front, Titan has committed to providing a A$120 million (US$85 million) loan facility for Manna. Global Lithium plans to make a final investment decision on Manna by the end of 2026, with construction expected to commence after that decision, targeting first spodumene shipment by June 2028. Global Lithium said the financing will help reduce execution risk as it advances the project during a period of lithium market volatility.

The acquisition comes as weak electric vehicle sales have weighed on lithium industry valuations, although the energy transition and a growing battery storage market continue to underpin long-term demand expectations.

Global Lithium is also backed by billionaire Chris Ellison, whose Mineral Resources (ASX: MIN) holds more than a 9% stake in the developer. The company's board has unanimously recommended that shareholders vote in favor of the scheme of arrangement, saying that given lithium price volatility and the development and construction risks facing Manna, the cash proposal is in shareholders' best interests.

Titan is developing a large-scale refinery in Abu Dhabi aimed at producing battery-grade lithium carbonate and lithium hydroxide for EV batteries and other applications. Acquiring Global Lithium would provide Titan with a potential long-term Australian feedstock source for these downstream operations, supporting its strategy of controlling both resources and processing capacity. Titan aims to become the world's largest lithium producer by 2030.

The transaction remains subject to shareholder and other necessary approvals. Global Lithium expects to hold a scheme meeting in December, with implementation scheduled for mid-January 2027.