Tesla supplier CATL to acquire Millennial Lithium for nearly $300M

Tesla supplier Contemporary Amperex Technology will acquire Millennial Lithium in an all-cash deal worth 377 million Canadian dollars (US$297.1 million).

The Chinese electric-vehicle battery maker will buy all outstanding shares of Canada-based Millennial Lithium at C$3.85 each. That is a 6.9% premium to an earlier offer made by Ganfeng Lithium Co., Millennial Lithium said Tuesday. Millenial Lithium had received the nonbinding proposal from CATL for the acquisition on Sept. 8.

The acquisition is subject to shareholder, regulatory and court approvals, Millennial Lithium said. The company, which operates lithium mines in Argentina, said it expects to convene a shareholders meeting on Nov. 15 to vote on the deal.

Upon completion of the transaction, Millennial Lithium’s shares will be delisted from the TSX Venture Exchange, it added.

As one of the world’s largest electric-vehicle battery makers, CATL has unveiled multibillion-dollar plans to ramp up production capacity in the longer term amid a booming electric-vehicle industry. It said in August that it planned to sell US$9 billion in stock to fund expansion projects.