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Allion Legal and Allen & Overy advise on $500m Galaxy merger

Allion Legal and Allen & Overy advise on $500m Galaxy merger

Allion Legal and Allen & Overy have acted on Galaxy Resources's $500m merger with Canada's Lithium One.

Allion Legal and Allen & Overy have advised on Galaxy Resources's $500 million merger with Canada's Lithium One.

Allion Legal's corporate and resources team are advising Galaxy Resources on the merger, which will be effected via a plan of arrangement in Canada. The deal was announced on 30 March this year.

The firm's principals Philip Lucas and Stuart Mengler are leading the Allion team advising Galaxy, with associates Lucas Vosch and Chris Rosario joining other lawyers on the deal.

Allion said the arrangement agreement implementing the deal needed to address a number of corporate and regulatory issues, it being a merger between an Australian listed and a Canadian listed entity.

Lucas said the structuring for this deal is unique, and includes the issuance of special voting and exchangeable shares to Lithium One shareholders.

"The cross-border nature of the transaction meant that there was a need to consider and work through complex corporate and regulatory issues. It was exciting for us to work through those aspects with Galaxy," Lucas said.

The merged entity will be a major global lithium player, valued at around $500M. It will have assets in Western Australia, Argentina, China and Canada.

“The merger secures the highly regarded Sal De Vida brine project in Argentina for Galaxy, significantly increasing Galaxy’s resource base. Galaxy’s aim is to become a major player in the global lithium industry with vertically integrated operations from mining through to battery production. We are delighted to be closely advising Galaxy on all aspects of the merger and its global strategy”, said Allion partner Mengler.

Canadian law firm Fasken Martineau DuMoulin LLP also advise Galaxy on the deal.

Allen & Overy in Australia and Blake, Cassels and Graydon LLP in Canada are advising Lithium One on the merger. 

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