(Reuters) - Talison Lithium Ltd TLH.TO said it will terminate buyout talks with U.S.-based chemical producer Rockwood Holdings Inc ROC.N, a week after the lithium producer backed a sweetened takeover bid from China’s Chengdu Tianqi Industry Group Co.
Rockwood had offered to buy Talison for C$6.50 per share, below Tianqi’s revised offer of C$7.50 each. The Rockwood offer valued Talison at C$724 million, while Tianqi’s offer values the miner at C$847 million.
Talison’s board last week recommended that shareholders accept the Tianqi offer in the absence of a new bid from Rockwood.
Rockwood said in November that it was not interested in a bidding war.
Talison said on Wednesday it will pay Rockwood a C$7 million break fee.
Shares of Perth-based Talison, which is valued by the market at C$812 million, closed at C$7.33 on the Toronto Stock Exchange on Tuesday.
Reporting by Bhaswati Mukhopadhyay in Bangalore