Liontown Resources Ltd (ASX: LTR) shares have a spring in their step on Tuesday.
In morning trade, the lithium developer's shares are up 12% to $1.64.
This means that its shares are now up 29% since this time last week.
Why are Liontown shares surging?
Some of these gains have come from investor optimism in the industry after lithium futures in China rebounded last week following COP28.
Today's gain, on the other hand, appears to be from something completely different.
This morning, Azure Minerals Ltd (ASX: AZS) revealed that it has accepted a new takeover offer from Sociedad Química y Minera de Chile S.A. (NYSE: SQM).
However, this time around, SQM isn't doing it alone. It is teaming up with Gina Rinehart's Hancock Prospecting, which built up a blocking stake after SQM's original takeover offer was accepted by the company.
What does this mean for Liontown? Well, as you might remember, this wasn't the first time that Rinehart attempted to block a lithium deal from completing.
Prior to Azure Minerals, Hancock Prospecting was scrambling to buy Liontown shares in order to build up a stake to block Albemarle Corp (NYSE: ALB) from acquiring the Western Australian lithium developer.
Though, unlike SQM, Albemarle abandoned its takeover plans after Hancock made its move. The US mining giant advised that "its decision to withdraw its proposal was due to the growing complexities associated with executing the transaction."
But judging by the gains being made by Liontown shares today, it seems that some investors may be betting on Hancock Prospecting joining forces with Albemarle Corp to complete a deal for Liontown.
Time will tell if that is the case.
