Rare earth merger and acquisition wave is rising again! USA Rare Earth (USAR.US) acquires Brazil's Serra Verde for 2.8 billion dollars.

American rare earth company USA Rare Earth (USAR.US) has agreed to acquire Brazil's Serra Verde Group in a deal that adds to a recent series of transactions in the industry. The U.S. company announced on Monday that it will pay $3 billion in cash and issue approximately 1.268 billion shares of stock to acquire Serra Verde, which owns a large rare earth mine in Brazil. According to a statement, the offer values the target company at around $2.8 billion. The transaction is expected to be completed in the third quarter. Currently, the U.S. and its allies are racing to secure alternative supplies of rare earth elements, a market that has long been dominated by China. These minerals are used in the manufacturing of consumer electronics, automobiles, and high-strength magnets used in defense systems. Recent merger and acquisition activities highlight a global trend towards building rare earth production capacity following industrial stoppages last year due to threats from China restricting exports. In January of this year, U.S. Energy Fuels Inc. bid $299 million to acquire Australian Strategic Materials Ltd., aiming to establish a "mine-to-metal" supply chain for these critical commodities. USA Rare Earth already owns a mine in Texas, and the company is banking on acquiring Serra Verde to help build a vertical integration platform covering mining, separation, metallization, and magnet manufacturing. The Brazilian company operates a large ion clay deposit capable of producing key magnetic rare earths, including the more scarce heavy rare earth elements. USA Rare Earth CEO Barbara Hampton stated in the announcement that the mine is a "unique asset and the only producer outside of Asia capable of supplying all four magnetic rare earths on a commercial scale."