SQM, Santiago, reported Oct. 11 that it has filed a motion for reconsideration to the resolution dated Oct. 4 before the Antitrust Court, Tribunal de Defensa de la Libre Competencia (TDLC), which approved the out of court settlement agreement reached between the Chilean National Economic Prosecutor Office, Fiscalía Nacional Económica (FNE), and Tianqi Lithium Corp. (GM Sept. 14, p. 25, Sept. 21, p. 1). The agreement outlined stipulations to Tianqi Lithium’s purchase of Nutrien Ltd.’s 24 percent stake in SQM.
SQM, which is still dominated by company’s still controlled by former President Julio Ponce, said it is important to remember that the investigation carried out by the FNE pointed out and verified that the intended Tianqi transaction presented several risks to competition. Accordingly, it also noted that the FNE ruled out that this transaction would result in efficiencies.
In SQM´s opinion, the measures of the agreement do not effectively resolve the risks that are intended to be mitigated, and are not properly structured to prevent the access to sensitive information, which along with harming SQM, could also harm the market.
SQM reiterates that as a publicly traded corporation with shares traded in Chile as well as on the New York Stock Exchange, it does not oppose entry of new shareholders, and acknowledges that this decision is not for SQM to oppose. Equally, SQM said it does not discriminate nor favor shareholders or investors based on their political views, nationality or other.
Both Tianqi Lithium and Nutrien expect the deal to close in the fourth quarter.