Orocobre merges with Galaxy Resources to form top five global lithium chemicals company

Client(s) Orocobre Limited

Jones Day advised Orocobre Limited (Orocobre), an ASX and TSX-listed global lithium carbonate supplier with operations in Argentina, on its merger-of-equals with Galaxy Resources Limited (Galaxy), an ASX-listed global lithium company with operations in Australia, Argentina, and Canada, creating a top five global lithium chemicals company (by market capitalization). The merged group will have a market capitalization of approximately AU$4 billion (US$3.1 billion) and production capacity of approximately 40 ktpa lithium carbonate equivalent.

The merger was effected by an Australian scheme of arrangement whereby Orocobre acquired 100% of Galaxy’s shares and Galaxy shareholders received 0.569 Orocobre shares for each Galaxy share held as consideration. Upon completion of the transaction, Galaxy shareholders held 45.8% of the fully diluted share capital of the combined entity and Orocobre shareholders held the remaining 54.2%.