Critical Metals Corp. Initiates $835M Acquisition of European Lithium Ltd.
Critical Metals Corp. has proposed an acquisition of European Lithium Ltd. valued at $835 million, representing a strategic move to consolidate ownership of the Tanbreez Rare Earth Project. The transaction, requiring shareholder approval, is expected to close by the second half of 2026 and aims to simplify Critical Metals' ownership structure.
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Critical Metals Corp. intends to acquire European Lithium Ltd. for approximately $835 million, offering shareholders 0.035 shares of Critical Metals for each share held. This acquisition would provide Critical Metals full ownership of the Tanbreez Rare Earth Project in Greenland, where European Lithium currently holds 7.5%.
European Lithium shareholders would maintain about 45% ownership in the combined entity post-transaction. Critical Metals' market cap is currently $1.45 billion, with shares recently trading at $11.51.
The deal's closure hinges on several conditions, including shareholder approval and maintaining minimum cash reserves of AUD$330 million by European Lithium. A shareholder meeting is projected for the third quarter of 2026, with completion anticipated by late 2026. This acquisition could enhance Critical Metals' asset base and public float while reducing shareholder dilution.
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