Australia’s Sayona Mining Limited (ASX: SYA) is set to merge with Piedmont Lithium Inc. (NASDAQ: PLL), a North Carolina-based lithium producer. This merger will consolidate their assets into a single entity, streamlining operations and establishing a significant presence in the North American lithium market.
Sayona has agreed to acquire Piedmont in an all-stock transaction, resulting in a combined entity with an estimated pro-forma market capitalization of $623 million. Under the terms of the deal, Sayona will become the parent company, offering a 6% premium for Piedmont based on their closing share price prior to the announcement.
The merger, expected to be finalized in the first half of 2025, will result in a combined company (MergeCo) domiciled in Australia. MergeCo will maintain its primary listing on the Australian Securities Exchange (ASX) and its secondary listing on the Nasdaq in the United States.
MergeCo plans to initiate capital raises, with Sayona securing A$40 million and an additional A$69 million through a conditional placement, while Piedmont will issue shares worth $27 million.
The agreement calls for an all-stock merger, with shareholders of Sayona and Piedmont each holding a 50 percent stake in the new entity. Lucas Dow, the CEO of Sayona Mining, will take the helm as MergeCo’s Chief Executive Officer, while Keith Phillips, CEO of Piedmont Lithium, will serve as a strategic advisor for six months post-merger.
The merger brings together the complementary strengths of Sayona and Piedmont, including their joint ownership of the North American Lithium (NAL) project in Quebec. By unifying the NAL operation under a single corporate structure, the companies aim to simplify logistics, reduce costs, and unlock significant potential for brownfield expansion.
The merger will also consolidate the companies’ significant lithium reserves and resources. Combined, their Ore Reserve stands at 70.4 million tonnes (Mt) with a grade of 1.15 percent lithium oxide (Li2O). Their Mineral Resource base exceeds 150 Mt, making MergeCo the largest hard-rock lithium producer in North America.
The NAL project, located in Quebec, is a focal point of this merger. Both companies believe that unified ownership will streamline operations and support the planned brownfield expansion, which could significantly increase production capacity. Other critical assets include the Carolina Lithium Project in the U.S. and the Moblan Lithium Project in Quebec.
The merger remains subject to several approvals, including shareholder votes and clearance from regulatory bodies in the United States and Canada. The companies must also secure approval under the Hart-Scott-Rodino Antitrust Improvements Act and the Investment Canada Act. Additionally, the U.S. Committee on Foreign Investment (CFIUS) will need to review the deal.
This merger reflects broader trends in the global lithium industry, where companies are increasingly pursuing consolidation to strengthen their market positions. The deal comes shortly after Rio Tinto (NYSE: RIO) announced its $6.7 billion acquisition of Arcadium Lithium, signaling growing confidence in the long-term outlook for lithium.
Pending regulatory and shareholder approvals, MergeCo is expected to begin operations by mid-2025.
Information for this story was found via The Wall Street Journal and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
