Deal off, game on: The battle for Liontown is just beginning
Less than five hours after Liontown Resources announced the withdrawal of Albemarle’s $6.6 billion takeover bid, the lithium junior’s biggest shareholder, Gina Rinehart, was busy setting up a new vehicle for her pivot towards critical minerals.
It was 2.13pm on Monday when the Australian Securities and Investments Commission received the paperwork for the establishment of a new company called Hanrine Future Metals.
Liontown Resources boss Tony Ottaviano has had a tough week. Trevor Collens
The new company is wholly owned by Rinehart’s flagship company Hancock Prospecting, it shares Hancock’s address on Ventnor Street in West Perth, and is staffed by some of her most loyal lieutenants, such as Tad Watroba.
At the same time, about 250 metres away in the Liontown offices on Ord Street, the post-Albemarle era was marked by the sound of ringing phones.
“The moment we announced that Albemarle had decided not to proceed and withdraw, the phone started ringing again from customers, from joint venture partners around our downstream strategy,” says Liontown chief Tony Ottaviano.
“That is an indication that, whilst the current market has come off a bit, the medium to long term is still strong.”
Monday’s action in that quiet corner of West Perth illustrates how the demise of the Albemarle bid is not so much the end of something, but the beginning of a new game.
After exactly one year of posturing and positioning around Albemarle’s interest – which began with an offer on October 20 last year to buy the company for $2.20 per share – the players in the battle for Liontown are back to something resembling square one.
It’s all up for grabs once more.
But in the year since Albemarle first privately signalled its interest to Liontown, the
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