Critical Metals to acquire European Lithium in $1.16B deal
- Critical Metals received Supreme Court approval to acquire European Lithium in an all-scrip deal valued at $1.16 billion.
- The combined entity aims to streamline ownership of the Tanbreez rare earths project in Greenland by eliminating cross-holding dilution overhang.
- The takeover targets critical mineral independence from China, with an initial operational focus on supplying hafnium for nuclear reactors.
Critical Metals (NASDAQ:CRML) secured approval from the Western Australian Supreme Court to proceed with its proposed $1.16 billion takeover of European Lithium (ASX:EUR).
The all-scrip deal requires European Lithium shareholders to endorse the scheme, which would grant them approximately 40% ownership of the combined entity.
“We are concentrating on hafnium because we believe China will need to use all of their own reserves of that internally,” said Critical Metals Executive Director Tony Sage.
The acquisition aims to eliminate a cross-holding dilution overhang from European Lithium, holding a one-third stake in Critical Metals, whilst consolidating control over the 4.7 billion-tonne Tanbreez project in Greenland.
Following the announcement, the European Lithium share price was unchanged at $0.34.
Critical Metals was formed in 2024 through the combination of European Lithium's Austrian subsidiary with Sizzle Acquisition Corp.
The flagship Tanbreez deposit contains key industrial materials, including tantalum, niobium, zirconium, and rare earth elements destined for global technology supply chains.
