IGO finalises $1.2bn acquisition

IGO said today its scheme of arrangement, to acquire 100 per cent of Western Areas, was legally effective, with the deal scheduled to complete later this month.

The scheme has taken effect following approvals by Western Areas shareholders and the Supreme Court of Western Australia and subsequent lodgement with the Australian Securities and Investments Commission.

IGO said it has been working closely with Western Areas on the process of integrating the two businesses and was looking forward to welcoming the Western Areas team into the IGO business once the $1.26 billion transaction has been completed on 20 June.

Managing Director Peter Bradford said the acquisition represented a logical consolidation of key nickel assets in Western Australia and enhanced IGO’s position as a leading, independent producer of critical metals.

It brings together IGO’s Nova nickel mine with Western Areas’ Forrestania and Cosmos mines.

“We are looking forward to unlocking unique synergies across the combined nickel portfolio,” Mr Bradford said.

He added IGO was planning to immediately commence feasibility studies on downstream nickel sulphate production.

Mr Bradford said this would bring IGO closer to key customers in the clean energy and electric vehicle industries.

The Western Areas deal comes one year after IGO bought a minority stake in Tianqi’s WA assets, notably the Greenbushes lithium mine and its Kwinana lithium hydroxide refinery.

Western Areas shareholders will be paid $3.87 cash per share, up from an initial offer of $3.36 per share.

Trading in Western Areas shares will cease from close of trade today.