Galaxy Resources (ASX:GXY)
and Orocobre (ASX:ORE)
have agreed to a proposed AU$4 billion merger, pursuant to which Orocobre will acquire 100 per cent of the shares in Galaxy. The merger will create the world's fifth-largest lithium chemicals company.
Galaxy shareholders will receive 0.569 Orocobre shares for each Galaxy share held.
As part of the proposed scheme, Martín Pérez de Solay will remain CEO and Managing Director, with a board and management team drawn from the combined group. The company's head office will be in Buenos Aires, with a corporate headquarters on the Australian east coast. A new name for the merged entity will be selected in due course.
Shares in Orocobre (ASX:ORE)
are trading 26 cents higher at $6.46.