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Chinese electric-vehicle maker BYD (OTCPK:BYDDF) has had discussions about a possible acquisition of a lithium producer in Brazil.
BYD had talks with Sigma Lithium (NASDAQ:SGML) over a possible supply agreement, the Financial Times reported on Sunday, citing an interview with Alexandre Baldy, BYD’s chair in Brazil.
“Different strands are being discussed about supply, a joint venture, anacquisition . . . nothing is concrete,” Baldy told the FT.
Baldy disclosed that he met Sigma Lithium’s CEO Ana Cabral-Gardner in Sao Paulo in December, though he declined to give more details about the talks. Sigma (SGML) declined to comment to the FT.
The BYD report comes after Sigma Lithium (SGML) said in September it was evaluating strategic alternatives after receiving proposals for its Grota do Cirilo project in Brazil, Sigma Brazil, and the parent company.
Sigma Lithium (SGML) last month announced that it plans to list Sigma Brazil on both Nasdaq and the Singapore Stock Exchange. The dual listing of Sigma Brazi is being done solely “for the purpose of closing the strategic transaction.”
In connection with the strategic review, Sigma Lithium (SGML) last month said it entered contractual and detailed structural negotiations with finalists, which it expected to continue into 2024.
A Brazilian publication last month reported that Chinese battery maker CATL and automaker Volkswagen (OTCPK:VWAGY) were likely the final bidders for Sigma Lithium (SGML). The two consortiums believed to be in the final stretch to purchase Sigma Lithium were CATL and Volkswagen, according a report in Brazil’s Exame publication.
Bloomberg reported last February that Tesla (TSLA) had been considering a takeover of the company. Tesla (TSLA) did approach Sigma Lithium (SGML), though no deal pogressed, according to the Exame report. CMOC, a Chinese mining company focused on molybdenum, also looked at the asset. PIF, the investment arm of Singapore’s sovereign wealth fund, was also advanced in talks, though those discussions cooled over price.
The potential deal for BYD (OTCPK:BYDDF) comes as the electric-vehicle maker on announced on Tuesday that it will start selling vehicles in Indonesia, the world’s fourth largest nation by population, next week. BYD posted record sales of 3.02M electric vehicles in 2023 to mark 62% growth from the prior year. The sales comprise 1.6M battery-electric vehicles and approximately 1.4M plug-in hybrid electric vehicles.
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Image and article originally from seekingalpha.com. Read the original article here.