Oct 9 (Reuters) - Rio Tinto said on

Wednesday it will acquire Arcadium Lithium ( ARLTF ) in an

all-cash transaction, valued at $6.7 billion, in a deal that

will make it the world's third-largest lithium producer.

Rio Tinto will acquire the United States-based lithium

producer for $5.85 per share, it said. The deal represents a 90%

premium to Arcadium's closing price of $3.08 per share on Oct.

4, the day Reuters exclusively reported on a potential deal

between the two firms.

Rio would gain access to lithium mines, processing

facilities and deposits across four continents to fuel decades

of growth, as well as a customer base that includes Tesla, BMW

and General Motors.

"We are confident that this is a compelling cash offer

that reflects a full and fair long-term value for our business

and de-risks our shareholders' exposure to the execution of our

development portfolio and market volatility," Arcadium Lithium's ( ARLTF )

CEO Paul Graves said in a statement.

The transaction, which has been unanimously approved by

the companies' board of directors, is expected to close in mid

2025.