Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  SHENZHEN STOCK EXCHANGE  >  Tianqi Lithium Corp    002466   CNE100000T32

TIANQI LITHIUM CORP

(002466)
  Report  
SummaryNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Chilean Court Refuses Challenge to Chinese Firm's Purchase of Stake in Lithium Miner -- Update

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/25/2018 | 05:49pm EDT

By Micah Maidenberg

A top Chilean court decided not to hear a lawsuit that sought to block a Chinese lithium producer from acquiring a stake in its larger rival, clearing the way for the biggest-ever deal in an industry that supplies the burgeoning electric-vehicle market.

The Constitutional Court of Chile on Thursday declared a suit brought by companies controlled by billionaire Chilean businessman Julio Ponce Lerou inadmissible. Mr. Ponce's companies had challenged the process a competition regulator in the South American country used to sign off on Tianqi Lithium Corp.'s planned acquisition of a 24% stake in Chile's flagship lithium producer, Sociedad Química y Minera de Chile S.A., or SQM.

Tianqi agreed in May to buy the stake for about $4.1 billion from Nutrien Ltd. An attorney representing Mr. Ponce's companies didn't immediately respond to a request for comment.

The closely watched deal will draw the companies that produce the bulk of the world's lithium supply closer, raising fears among some critics that the industry may morph into an Organization of the Petroleum Exporting Countries-like cartel.

Should Tianqi complete the deal as expected, it will become the second-largest shareholder in SQM, the second-largest lithium producer by volume in the world. Tianqi also operates a lithium mine in Australia with the largest producer, Charlotte-based Albemarle Corp.

Together, the three companies control about two-thirds of global lithium production, according to Benchmark Mineral Intelligence.

As the second-largest shareholder of SQM, Tianqi will get "insights into the development plans of one of their major competitors," says Chris Berry, founder of House Mountain Partners LLC, a New York-based adviser to battery-metals companies and investors.

In a joint statement, Tianqi and Nutrien said they were pleased with the court's decision and expect the deal for the SQM shares to close by the end of the year.

Nutrien had to sell the SQM stake to comply with demands set by Indian and Chinese regulators overseeing a 2016 merger that created the Canadian company.

A spokeswoman for SQM didn't immediately respond to a request for comment.

The suit Mr. Ponce's companies filed with the Constitutional Court came after a court focused on competition issues approved an agreement that Tianqi struck with Chile's competition regulator. The agreement is meant to limit how much influence the Chinese company could have on SQM.

Under the deal, which lasts up to six years, Tianqi's board nominees for SQM can't be its own executives, directors or employees, for example. SQM has said it doesn't provide it with enough protections from a competitor.

The ruling Thursday means that the competition court can now work through motions that ask the tribunal to reconsider its initial decision on the deal between Tianqi and Chile's competition regulator. SQM and an affiliate of Mr. Ponce have filed such motions, according to Nutrien and Tianqi.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
NUTRIEN LTD. -0.58% 63.66 Delayed Quote.-0.72%
SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. End-of-day quote.
TIANQI LITHIUM CORP End-of-day quote.
WTI -0.11% 54.14 Delayed Quote.18.22%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TIANQI LITHIUM CORP
09/17Chile taps China, Japan in lithium-for-tech push, faces tough sell
RE
09/17Chile taps China, Japan in lithium-for-tech push, faces tough sell
RE
08/28Slump in lithium prices hammers profits at China's Ganfeng
RE
08/23Tesla in advanced talks with LG Chem on battery supply in China - source
RE
08/22China's Tianqi Lithium first half net profit slumps, clinches LG Chem supply ..
RE
06/12Lithium industry at a crossroad
RE
06/11Albemarle declines to participate in LME lithium contract
RE
06/10Tianqi says happy 'for now' with stake in SQM - president
RE
06/09How much does lithium cost? The industry can't seem to agree
RE
04/25TIANQI LITHIUM : Liebherr Secures First Australia Order
AQ
More news
Financials (CNY)
Sales 2019 5 744 M
EBIT 2019 1 938 M
Net income 2019 558 M
Debt 2019 29 576 M
Yield 2019 0,19%
P/E ratio 2019 44,0x
P/E ratio 2020 15,4x
EV / Sales2019 10,3x
EV / Sales2020 7,82x
Capitalization 29 555 M
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 26,74  CNY
Last Close Price 25,88  CNY
Spread / Highest target 49,0%
Spread / Average Target 3,34%
Spread / Lowest Target -18,9%
EPS Revisions
Managers
NameTitle
Wei Wu General Manager & Director
Wei Ping Jiang Chairman
Qing Yang Chairman-Supervisory Board
Jun Zou Director, Chief Financial & Accounting Officer
An Qi Jiang Director
Sector and Competitors
1st jan.Capitalization (M$)
TIANQI LITHIUM CORP4 176
GRAFTECH INTERNATIONAL LTD.4.28%3 364
IMERYS-22.25%3 313
JINDUICHENG MOLYBDENUM CO LTD20.44%3 187
GEM CO LTD--.--%2 616
AURUBIS1.11%2 164