China’s Shenghe Resources to buy Australia’s Peak Rare Earths for $97M
Peak Rare Earths said on Thursday that China’s Shenghe Resources will acquire the Australian firm for A$150.5 million ($96.62 million), in addition to the full amount raised under Peak’s proposed A$7.5 million entitlement offer.
China’s Shenghe Resources to Acquire Peak Rare Earths in $96.6 Million Deal
Peak Rare Earths Ltd announced on Thursday that it has agreed to be acquired by China-based Shenghe Resources Holding Co. for approximately A$150.5 million (US$96.62 million). The acquisition includes a commitment to fully subscribe to Peak's proposed A$7.5 million entitlement offer, bringing additional financial support to the Australian company.
This deal reflects growing strategic interest in rare earth elements, which are critical for a range of advanced technologies including electric vehicles, wind turbines, and military equipment. Shenghe Resources, a major player in the global rare earth supply chain, is seeking to strengthen its access to overseas resources as China aims to maintain its dominance in the global rare earths market.
Peak Rare Earths is developing the Ngualla Rare Earth Project in Tanzania, which is considered one of the world’s largest and highest-grade undeveloped rare earth deposits. The acquisition by Shenghe could fast-track the project’s development by bringing in capital and technical expertise, although it may also raise scrutiny from regulators concerned about foreign control over strategic mineral assets.
The deal still requires shareholder and regulatory approvals before it can be finalized.
