Nov 19 (Reuters) - Australia's Sayona Mining ( SYAXF )

will buy U.S.-based Piedmont Lithium ( PLL ) in an all-stock

deal that will consolidate its Canadian operations and

strengthen its exposure to the North American electric vehicle

sector, the companies said on Tuesday.

The firms did not disclose a deal value. They did not

immediately respond to Reuters' requests for comment.

Under the deal, the two companies will merge to create a

lithium business, with Sayona becoming the parent entity. Sayona

and Piedmont shareholders will own the combined entity

approximately evenly.

As part of the merger, Sayona will raise A$40 million

($26.04 million) through a capital raise and A$69 million

through a conditional placement of shares. Piedmont will issue

shares worth $27 million.

The Australian lithium market is reeling from rapid supply

growth that has outpaced strong demand projections, as the

adoption of electric vehicles has been slower than expected.

The combined entity will have an estimated pro-forma market

capitalisation of $623 million, both companies said.

($1 = 1.5361 Australian dollars)

(Reporting by Roshan Thomas and Rajasik Mukherjee in Bengaluru;

Editing by Abinaya Vijayaraghavan)