Lynas Rare Earths to acquire Meteoric Resources in $1 bn all-share deal

Lynas Rare Earths has agreed to purchase Meteoric Resources in an all-scrip transaction that values the target at $968 million, a 68.4% premium to its Wednesday share price. Backed by billionaire Gina Rinehart, Lynas will gain control of Meteoric’s Caldeira project in Brazil, a large ionic-clay rare-earth deposit that fits its "Towards 2030" strategy. The Australian miner, already the biggest producer of rare earths outside China thanks to its Mt Weld mine, intends to process Caldeira ore at its 100-hectare plant in Malaysia once the mine is online, funding the $500 million construction from its $1.2 billion cash and short-term deposits.

After the announcement, Meteoric’s stock surged 50% to a two-year high, while Lynas shares slipped 5.5%. Hancock Prospecting, Rinehart’s company, holds an 8.2% stake in Lynas worth roughly $1 billion.