The Allkem Ltd (ASX: AKE) share price is starting the week in the red.
In morning trade, the lithium miner's shares are down 5% to $15.15.
Image source: Getty Images
Why is the Allkem share price falling?
Investors have been hitting the sell button today despite the company releasing a positive update on its proposed merger with Livent Corp (NYSE: LTHM).
According to the release, things are progressing well with respect to the merger. Most recently, Allkem and Livent have lodged antitrust/competition and investment screening/foreign investment regime notifications in all required jurisdictions.
In addition, the preparation of Allkem's notice of meeting and scheme booklet is in progress, with Allkem having recently appointed Kroll Australia as the independent expert. It will be tasked with providing an opinion on whether the scheme is in the best interest of Allkem shareholders.
If all goes to plan, Allkem and Livent are currently targeting completion of the transaction by the end of calendar year 2023.
So why the selling?
The weakness in the Allkem share price appears to be down to broad selling in the lithium industry on Friday night on Wall Street and this morning on the ASX boards.
Furthermore, the value of Allkem shares is inextricably linked to the Livent share price at present due to the aforementioned merger.
So, with the Livent share price tumbling 4% to US$26.53 on Wall Street on Friday, it was inevitable that the Allkem share price would fall at least by this margin on Monday.
Elsewhere in the lithium industry on Monday, the Pilbara Minerals Ltd (ASX: PLS) share price is down 4% and the Core Lithium Ltd (ASX: CXO) share price is down 12%. The latter follows the release of its quarterly update which included disappointing guidance for FY 2024 and FY 2025.
