Allens advises China's Tianqi Group on lithium joint venture

Allens has advised the Tianqi Group, China's largest producer of lithium-based chemicals, on its US$1 billion lithium joint venture with Rockwood which closed today.

Allens advised Tianqi Group on its 2013 acquisition of Talison Lithium, a Western Australia-based producer of lithium concentrates. At the time, Talison was listed on the Toronto Stock Exchange.

The current transaction involves the creation of a 51/49 joint venture with US-headquartered specialty chemicals and materials company Rockwood Holdings, Inc. At the same time, Allens also advised Tianqi Group on:

• the grant by Rockwood of a three-year call option to invest from 20 to 30 per cent in Rockwood Lithium GmbH, which operates the Asian and European arm of Rockwood's global lithium business; and
• the sale of its remaining 51 per cent interest in Talison to its Shenzen Stock Exchange-listed affiliate Sichuan Tianqi Lithium Industries, Inc. The Allens team on the matter was led by Partners Guy Alexander and Marcus Clark with key support from Partners Fiona Crosbie (Competition) and Mark McAleer (Resources).

Mr Alexander said the Allens team worked on the negotiation of an acquisition agreement and shareholders' agreement, as well as distribution and off-take agreements for the division of production between Tianqi Group and Rockwood.

Mr Clark said the firm was pleased to once again be involved in another significant Tianqi Group deal and with the support received from the firm's global integrated alliance partner, Linklaters, in Germany.

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