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Fly News Breaks for May 17, 2018
SQM, FMC, ALB
May 17, 2018 | 07:35 EDT
Tianqi being close to purchasing a 24% stake in SQM for $4.3B, as reported yesterday by Reuters, has positive implications for both Albemarle (ALB) and FMC Corporation, Citi analyst P.J. Juvekar tells investors in a research note. This could be the first step towards "much-needed" consolidation in lithium, the analyst adds. He estimates the offer values SQM's lithium business at around 23 times 2018 EV/EBITDA. The analyst believes the deal, should it materialize, bodes well for the valuations of Albemarle's and FMC's lithium businesses.