Nutrien Ltd., Saskatoon, this week said it continues to eye a fourth-quarter close on the sale of its 24 percent stake in SQM, Santiago, for US$4.07 billion to China’s Tianqi Lithium (GM May 18, p. 1). SQM said on Sept. 13 that it opposes a proposed out-of-court settlement between the Chilean Antitrust Regulator, Fiscalia Nacional Economica (FNE), and China’s Tianqi Lithium Corp. relating to the purchase (GM Sept. 14, p. 25).
Nutrien said on Sept. 14 that it is evaluating all potential responsive actions. It told Green Markets this week that it would have no further comment while everything is being reviewed by the Chilean regulatory and court systems.
As previously reported, FNE put together a long list of stipulations for Tianqi Lithium to adhere to after the sale; however, that was not enough for SQM, which expressed its opposition on Sept. 13 at a hearing before Chile’s Antitrust Court, the Tribunal de la Libre Competencia (TDLC). TDLC must approve or reject the proposal. The agreement expires on Oct. 4 if no decision has been made.
“The out-of-court settlement does not affect Tianqi Lithium’s rights in SQM and does not change Tianqi Lithium’s view on this transaction,” the Chinese company told Bloomberg. “This transaction will generate stable investment returns to the company under the current arrangements. We do not and will not interfere in the daily operation of SQM.”
According to Bloomberg, the combined lithium output of Tianqi Lithium, SQM, and Albermarle accounts for over half of the world’s lithium production.
Nutrien must sell its SQM stake as a condition of China and India’s approval for the Potash Corp. of Saskatchewan Inc. and Agrium Inc. merger.