☕️ Arcadium's full value

Good morning.

Rio Tinto is dropping $9.9 billion to snatch Arcadium Lithium, paying a hefty 90% premium on its current price. Seen through Rio’s CEO Jakob Stausholm however, the all-cash deal could be considered a bargain compared to Arcadium’s $15.7 billion valuation back in January, when then Allkem completed the merger (with US peer Livent) that created Arcadium.

“We paid a full and fair value. It’s good news for the Arcadium shareholders but we can create (value) over and above that,” Stausholm told analysts on the call. “The full potential of this portfolio, if it’s executed well, I have no doubt that it will generate a lot of value to the Rio Tinto shareholders,” he said.

The deal catapults Rio into the top three lithium producers globally, behind Albemarle and SQM, giving it control over 5% of the world's lithium supply just as demand for electric vehicle batteries and energy storage surges.

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Market movers

Mineral Resources shares fell 6.42% on Wednesday, taking the crown as the ASX 200’s biggest loser after JPMorgan slashed lithium price forecasts, which also hit other lithium names.

The quick sync

• Mutinex raises $17.5m for US expansion, valuing the Australian growth analytics startup at $132.5m. (Capital Brief)

• Labor delays streaming quotas until after US election, says Arts minister Tony Burke. (Capital Brief)

• Amazon eyes sports expansion in Australia, but NRL rights seem off the table. (Capital Brief)

• Federal police, accompanied by ASIC officers, raided four properties as part of the regulator's probe into alleged manipulation of a $14b bond sale by ANZ traders. (AFR)

• KKR is fighting the DOJ over stricter pre-merger filing accountability, potentially setting a new precedent for PE firms facing antitrust scrutiny. (Bloomberg)

• BlackRock is exploring a bid for private credit firm HPS, which could exceed US$10 billion, potentially outpacing HPS's planned IPO. (Bloomberg)

Trading floor

M&A

• OpenAI and Hearst Communications have partnered to include Hearst’s magazine and newspaper content in ChatGPT, with proper attribution, excluding Hearst’s TV channels. (Capital Brief)

• Bell Potter upgraded Seven Group’s price target, driven by WesTrac's strong revenue outlook, with a potential guidance upgrade expected in 2024. (Capital Brief)

• Speculation suggests Mitsubishi Chemical Group is eyeing the assets of Buckeridge Group. (The Australian)

• LDC finalized its takeover of Namoi Cotton after Olam's rival bid lapsed, with regulatory clearance and shareholder support. (Capital Brief)

• Apiam Animal Health's shareholders are ready to sell the $84m veterinary services business, attracting interest from bidders like EQT and Quadrant. (AFR)

• Novonix and ICoNiChem collaborate to improve sustainable nickel-based cathode materials using recycled metals, backed by Canada-UK critical minerals funding. (Capital Brief)

• Woodside Energy targets early 2025 for final investment decision on the Driftwood LNG project, following Tellurian acquisition and interest from potential strategic partners. (Capital Brief)

• Metals Acquisition considered the $1bn Neves Corvo mine in Portugal but opted out. (The Australian)

• Newmont sells Ghana's Akyem mine to Zijin Mining for up to US$1bn, focusing on core assets and capital returns. (Capital Brief)

• Treasurer Jim Chalmers is reforming competition laws, requiring mandatory reviews for supermarket mergers and greater scrutiny on private market transactions. (AFR)

Capital Markets

• Metals Acquisition Corp is raising $140m to pay off debt and restructure its capital following the purchase of Glencore's CSA copper mine. (AFR)

• Lithium stocks including Mineral Resources, Liontown, and Pilbara Minerals dropped on the ASX, reversing gains spurred by EU investment signals and Chinese battery output cuts. (Capital Brief)

• Titanium Ventures has led a $30m raise for Document Crunch to aid its global expansion in the construction document compliance sector. (AFR)

• Ellerston's Industrial Growth Fund is investing in a top John Deere distributor in WA's wheat belt, with plans for a potential IPO in three years. (AFR)

VC

• Mutinex raised $17.5m, reaching a valuation of $132.5m, with investors citing strong customer retention and ROI as key factors for backing the startup. (Capital Brief)

• Bailador Technology Investments increased its stake in Rosterfy by $3m. (Startup Daily)

• Australian startup funding dropped to $690 million in Q3 due to fewer mega-deals, mirroring 2023's downturn, but 2024 may still end strongly. (BNA)

People moves

• Ed Bostock has been appointed as a new partner at Anchorage Capital Partners. (AFR)

The watercooler