Peak Rare Earths, a company based in Australia, said it had approved the takeover of Shenghe Resources by a Chinese rare earths producer. The decision was made to choose certainty over a more lucrative but conditional U.S. bid.
Shenghe Singapore will purchase all shares of Peak that it does not own at A$0.443 per share. This value is A$195 ($129.9 millions) for the miner.
The Chinese company holds a stake of about 19.7% in the Australian miner.
The approval came after General Innovation Capital Partners, a U.S.-based company, made a non-binding bid of A$240m.
rejected
The bid was rejected earlier on Tuesday due to a lack of clarity regarding due diligence and execution.
Shenghe has said that it will not support the proposal of GICP.
Shenghe is a partly state-owned company
raised
Its offer, which was made earlier in the month, increased by over 23%
mid-May
. This would allow it to control Peak’s Ngualla Project in Tanzania, which is one of the largest deposits of neodymium & praseodymium(NdPr), crucial for electric vehicles.
Shenghe is expanding its presence in Australia’s rare-earths sector. In 2022, Shenghe purchased nearly 20% of Peak and signed a contract to buy Ngualla products that same year.
Canberra is examining the possibility of a deal.
Price floor
Support critical mineral projects and position yourself as an alternative supplier to China.
The peak share price rose by 3.6%, to A$0.435 at 0313 GMT. This is the highest it has been in over two years.
(source: Reuters)
Source: https://energynews.oedigital.com/mining/2025/09/16/peak-rare-earths-australias-rare-earths-company-accepts-a-130-million-shenghe-bid-rejects-a-higher-us-offer