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Mexico, of course, has no interest in developing its own EV and energy storage industries. It is not concerned about all the production of what may be its first and only mine for several years going to China, for use in non-Mexican batteries. It is irrelevant to consider whether takeoff agreements are more important to them than takeovers. Nothing to look at here, don’t even think about putting both BCN and Ganfeng in a position where they will both choose to sell out at a below-market price to a Mexican investor.
This is getting interesting now and I'm sure Ganfeng are seeing it isnt a slam-dunk. I think there is everything to play for here. BorderBobs mission seems to be failing, I wonder if he gets paid a takeover bonus ?
Can people stop bickering please. It really would be appreciated my most BCN posters.
None of us really knew what would happen today after the very late RNS on Friday. The surprise to me is that it has made seemingly no difference whatsoever.
tomcat
You seem to have your head around the dates here. Given that Fridays RNS is entitled 'offer timetable suspended' Is the anticipated unconditional date/ Day 60 of 14th November now history? Or could that date still be reinstated/ valid if the Mexican government permissions are received in the next few days?
BB, Your answer to Dee shows how pathetic your reasoning is.
I am pleased that Dee still finds me important enough to remain a target for his Tavistock insults.
@BorderBob...
1. Are you still knocking around?
2. I'm still waiting for you to answer my question regarding Tavistock PR.
3. "That's the environment in which they (and you) chose to invest." - What do you mean by 'you'?
I thought you used to be invested here?
Was the environment different when you invested? I remember you saying you used to be invested here...
Or perhaps you were never invested?
Nothing gets done in Mexico without payment of "mordida" -- bribes to local, state and national officials. It has been a fact of life since lithium was found and claims made at Sonora. It will remain the modus operandi whether BCN, or Ganfeng, or both try to operate a mine there. (This is official corruption, not the blackmail by cartels as noted elsewhere.) More than 3,000 Mexican business leaders have taken their wealth to secret offshore in recent decades. At least 80 politicians and their families appear in the Pandora Papers. That's the environment in which they (and you) chose to invest.
Ganfeng will probably decide to play the game the way it has always been played. But they need the cooperation of Chinese diplomacy, and that government lately has been inscrutable. If they walk away from the takeover now, you can be certain that they will slow down production, perhaps until after the 2024 election. They profit just as much from a lithium shortage, as they do from increased lithium production.
Hi amunro. How have you voted against? Surely you just vote for or abstain?
I have mixed feelings with the Chinese connection. The cons are that they seem to want to dominate the Li market, and the offer is clearly not the best as it has acted as an anchor on the SP at a time when the commodity price has boomed.
The pros On the other hand, I believe, are that the Chinese will get this project done wheras the useless BCN BOD that we all know and love(!) seem to talk the talk but contemplate their navels most of the time. Plus of course there is the real question of security which I think should be taken seriously. Put it this way, who would prefer Secker giving potential baddies a lecture or some (probably) ex-military Chinese security 'advisors' telling them that messing with them would be a very, very bad idea. Unlike other world powers the Chinese don't really bother with the niceties of diplomacy and the law.
The ideal would be the pre May JV, but we have to face that's long gone. Without that the best would, for me at least, be an increased offer at about the £1 level
I voted against the low offer price; I suspect many other did as well. We are dealing with the Chinese here so who knows what games are being played? Apologies to any honest, genuine expat Chinese out there; hate to generalize but, well, business is business?
Matthew
Not sure what to think. Could anti trust rubber stamping have anything to do with the current political nationalisation questions? Even that silly deramping article earlier (usual stuff that gets put out every few months) admitted that political opposition to Li exploitation only affected new licences, as far as I am aware licence conditions have been complied with at Sonora. What do we expect on Monday?
"Mexican antitrust law is actually the product of three distinct documents. First, the Constitution, in article 28, bans monopoly and monopolistic practices. Second, the LFCE is the formal implementation of article 28 and is aimed at preventing and penalizing anticompetitive conduct and mergers. Third, regulations to implement the LFCE, published
in March 1998, develop specific aspects of the law."
Sounds fun.
https://scholar.smu.edu/cgi/viewcontent.cgi?article=1833&context=lbra …
@hamsters I agree I think this might just an excuse to misdirect from the low take up, maybe a higher offer might be on the cards? Although, I still kind of hope that there is a bigger problem and the whole cr*ppy deal gets scuppered.
Or Q) The 'offer' lapses due to the delays caused by this....thus saving face over the low take up??
Or c) they haven't got antitrust clearance yet - because these things take time.
Dee, lt looks like a begging note from the BOD !.
Not cleared Mexican Anti-trust...
This is what we like!
It's either a stalling plan, or there are genuine issues.
Either way, Operation Coco Pops is ago ;)
https://polaris.brighterir.com/public/bacanora_lithium/news/rns/story/w04g28x