In a prospectus filed on 10 February 2022, lithium producer Lithium Australia reported that it has made a non-binding offer (NBO) to Johnson Matthey PLC for the acquisition of the lithium ferro phosphate (LFP) production operations located in Candiac, Canada and a research and development facility on Moosburg, Germany.
The terms of the NBO would involve a consideration payment of approximately £10 million (US$13.4 million) in cash, subject to working capital adjustments and a further deferred payment of approximately £5 million (US$6.7 million) in cash.
As of the prospectus date, the NBO has not been accepted or rejected by Johnson Matthey PLC; however, discussions on certain aspects have commenced, Lithium Australia said. The company will make further announcements in the event that either the negotiations complete and binding agreements are executed or that the proposed transaction does not advance.
On 11 November 2021, Johnson Matthey announced its intention to pursue the sale of all or parts of its Battery Materials business with the ultimate intention of exiting. The has held discussions with a number of parties about a sale of the entire business, but these discussions did not result in an agreement to sell the entire business as a going concern. Consequently, the company is pursuing the sale of its individual assets. (Earlier post.)