☕️ Lithium value

Good morning.

Rio Tinto is circling Arcadium for a lithium play, clearly trying to scoop it up while prices are in the gutter.

Shares in dual-listed Arcadium are down more than 50% this year. But some investors are saying the company is worth closer to US$8 billion ($11.85 billion) than Rio’s speculated potential valuation range of between US$4 billion to US$6 billion.

After closing 45.7% higher on Monday in Sydney after the companies confirmed the talks, Arcadium shares listed in the US rose over 40% overnight to a market cap of around US$4.75 billion.

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Market movers

Rio's confirmed move on Arcadium lifted all lithium boats Monday, with Liontown Resources up 18.92% to $0.80 and Iris Metals surging 27.78% to $0.23. Names like Galan, Piedmont, Wildcat Resources, Strike Resources, Vulcan Energy and Core Lithium also soared.

The quick sync

• Marex targets ASX and carbon trading dominance after bold Jarden raid. (Capital Brief)

• Brent jumps over 3% to five-week high as Middle East conflict raises fears of oil supply disruption. (Capital Brief)

• FinClear wins clearing licence to disrupt ASX with blockchain trading for private companies. (AFR)

• Fortescue weighs $50m carbon credit opportunity as Andrew Forrest questions offsets. (AFR)

Trading floor

M&A

• Equinor buys a 9.8% stake in Ørsted for US$2.5bn to boost its renewables portfolio, targeting 12-16 gigawatts by 2030. (Capital Brief)

• QIC's private debt team invested $30m in Icon Group and is financing Genesis Capital's pursuit of Pacific Smiles. (AFR)

• IGO is emerging as the frontrunner to acquire Rio Tinto's Winu Project, a copper-gold deposit, with South32 also showing interest. (The Australian)

• Blackstone has made a non-binding offer for Singapore Post's Australian assets, valued at up to $1bn and generating $100m in earnings. (AFR)

• Pro Medicus has renewed an eight-year contract with Mercy Health at a higher transaction cost, reflecting strong confidence in its medical imaging solutions. (Capital Brief)

• EMM Consulting is looking for a buyer for a 45% stake, guided by Moelis, with an EBITDA of over $10m. (AFR)

• Circonomy, a Brisbane recycling venture, has entered voluntary liquidation due to financial unviability, with liquidators reviewing operations for potential sale. (Startup Daily)

• Freedom Furniture is testing the market for buyers as it seeks a comeback after a turnaround led by Blaine Callard. (AFR)

• Social Garden acquired The Natives to broaden its services beyond property and education. (BNA)

• Kohlberg Kravis Roberts explored a $2bn buyout of Domain Group but opted against it, choosing instead to partner in the acquisition of Property Exchange Australia, with guidance from Greg Hywood and Michael Stock. (The Australian)

Capital Markets

• The Takeovers Panel will review Energy Resources of Australia's discounted capital raise, delaying the process amid shareholder concerns and ongoing litigation over the Jabiluka mineral lease. (Capital Brief)

• Highfield Resources plans a potential dual listing in Hong Kong after acquiring Yancoal Canada's Southey potash project for $122m. (The Australian)

• Australian shares hit near-record highs, led by tech, financial, and lithium stocks after Rio Tinto's takeover talks and a Wall Street rally eased recession fears. (Capital Brief)

• Bowen Coking Coal aims to raise $70m through an entitlement offer and has secured $40.5m in commitments from key investors. (The Australian)

• Marex plans to grow in Australia's carbon markets and challenge the ASX's clearing monopoly, viewing the Asia-Pacific region as a major growth driver. (Capital Brief)

VC

• Westpac has invested in a $200m climate fund managed by Virescent Ventures, seeking access to top deals in collaboration with the Clean Energy Finance Corporation. (AFR)

• Antler has launched its second Australian fund, raising $77m to support over 100 pre-seed startups, with 40 investments already made since May 2023. (Startup Daily)

• AI startup Lorikeet raised $5m in seed funding led by Square Peg and Atlassian co-founder Scott Farquhar, highlighting AI's growing role in business. (BNA)

People moves

• Google Cloud appoints Paul Migliorini as VP for Australia and New Zealand, following his tenure as CEO of Versent. (Capital Brief)

• Steve Hammerton has been named head of corporate finance and strategic projects at engineering giant GHD. (AFR)

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