Livent and Allkem Ltd completed a merger of equals to form a new company named Arcadium Lithium (ALTM). The new company trades on the NYSE and is incorporated in the Bailiwick of Jersey. (Country = Jersey in myICLUB.)
Resolution: The details of entering this merger depend on whether one was a Livent or an Allkem shareholder. There is an additional complication for Livent shareholders. Livent was a US corporation and the new company, Arcadium Lithium, is a foreign company. Generally, a merger that results in a US company becoming a foreign company is a taxable event for US shareholders. In the SEC filings for this merger the companies state they believe the merger qualifies for an exemption and should be treated as a non-taxable reorganization. However, the SEC filings do warn that the tax law is unclear in this regard and the IRS may not agree with this interpretation. The following instructions assume the merger qualifies as a tax-free reorganization. Instructions for both Livent and Allkem shareholders are included below.
The Merger for Livent shareholders
Go to Accounting > Securities > Merger
Step 1
Step 2
The Merger for Allkem shareholders
Go to Accounting > Securities > Merger
Step 1
Step 2
