Huayou clears a major hurdle in Atlantic Lithium takeover
Atlantic Lithium has secured Australian foreign investment approval for Zhejiang Huayou Cobalt’s proposed acquisition, removing one condition to the scheme. Shareholder, court and other regulatory approvals are still required before the transaction can complete.
- FIRB approval removes a condition precedent to Huayou’s proposed acquisition
- Australian Treasury has formally stated it has no objection to the scheme
- Atlantic Lithium shareholders are expected to vote in November 2026
- Scheme booklet and independent expert’s report are expected in October
- Completion remains targeted for December, subject to outstanding conditions
FIRB approval removes a takeover condition
Atlantic Lithium Limited (ASX:A11) has cleared a significant regulatory hurdle in Zhejiang Huayou Cobalt’s proposed acquisition of the company, after Australia’s Foreign Investment Review Board approved the scheme of arrangement. The Australian Treasury has notified Huayou that the Commonwealth Government has no objection to the transaction.
That approval satisfies the FIRB condition precedent in the scheme implementation deed signed on 7 May 2026. It does not, however, make the acquisition unconditional. Atlantic Lithium said a number of other conditions remain outstanding, including further regulatory approvals, shareholder approval and sanction from the Supreme Court of Western Australia.
Shareholder vote remains the central test
The Atlantic Lithium board continues to unanimously recommend the scheme, subject to there being no superior proposal and an independent expert concluding that the transaction is in shareholders’ best interests. Directors also intend to vote shares they control in favour on the same basis.
The next substantive disclosure is expected in October, when the scheme booklet is due to be sent to shareholders subject to court approval. It will include the independent expert’s report and the board’s reasons for supporting the deal, giving shareholders the information needed before the vote.
Ewoyaa development remains tied to transaction progress
Atlantic Lithium is advancing the Ewoyaa Lithium Project in Ghana, which it aims to develop into the country’s first lithium-producing mine. Ghana’s Parliament ratified the project’s mining lease in March 2026, while the project already holds environmental and mine operating permits.
A shareholder meeting is expected in November, with implementation targeted for December if the remaining conditions are satisfied or waived. The timetable is therefore becoming clearer, but the transaction still has several decision points ahead: the independent expert’s assessment, the shareholder vote and the Western Australian court process.
Bottom Line?
FIRB approval improves the scheme’s path, but the independent expert’s report and November shareholder vote will determine whether Huayou’s proposed acquisition can move to completion.
Questions in the middle?
- Will the independent expert conclude that the scheme is in shareholders’ best interests?
- What other regulatory approvals remain outstanding before the transaction can proceed?
- Will shareholders endorse the deal when they receive the scheme booklet in October?
