Australian billionaire Gina Rinehart raises stake in lithium producer, threatening $4.3 billion Albemarle’s takeover

Gina Rinehart, an Australian billionaire, has acquired 19.9% of Liontown Resources, a lithium miner, which may obstruct Albemarle’s plan to buy the company for $4.3 billion. Since Albemarle Corp made a proposition for Liontown Resources in September, her company Hancock Prospecting, has been incrementally increasing their stake.

Gina Rinehart would gain a powerful advantage in lithium in Western Australia by taking ownership of the Liontown assets through a joint venture. She already has an exploration venture connected with the Indian government in the same area.

Hancock Prospecting has a wealth of experience in forming alliances, such as with Rio Tinto in iron ore, Shanghai CRED of China in the purchase of S. Kidman & Co’s cattle business, and POSCO of Korea with regards to Senex Energy.

Albemarle is partnered with China’s Tianqi Lithium, IGO Limited, and MinRes at the top-notch Greenbushes mine in Western Australia and the Wodgina mine in the Pilbara.

Gina Rinehart has placed Albemarle’s offer to purchase Liontown for $4.3 billion in serious jeopardy, due to a sharp decrease in lithium prices of nearly 70% this year due to an abundance of supplies and a decrease in Chinese demand.

Albemarle would need at least 75 per cent of voting shareholders’ support for the deal to pass, making it likely that Rinehart could block the US company’s takeover proposal since many investors do not typically vote.

Rinehart rose to prominence by reviving iron ore business Hancock Prospecting, founded by her father Lang Hancock in 1955, and transforming it into Australia’s largest private company.

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