Arcadium Lithium to be acquired by mining giant Rio Tinto in a $6.7 billion deal.

• Arcadium's Oct. 4 closing price of $3.08 per share was a 90% discount to the $5.85 per share that Rio Tinto offered in the all-cash transaction deal.
• The current market value of Arcadium Lithium is $4.56 billion, as per LSEG data, with shares experiencing a 37% increase in value this week.

On Wednesday, the world's second-largest miner announced it would acquire a U.S. lithium producer, Arcadium, for $6.7 billion.

Arcadium's Oct. 4 closing price of $3.08 per share was a 90% discount to the $5.85 per share that Rio Tinto offered in the all-cash transaction deal.

Arcadium Lithium's market value is currently $4.56 billion, according to LSEG data, with shares up 37% so far this week. Shares were up 30% in the premarket Wednesday at 4.50 a.m. ET time.

On Wednesday, Rio Tinto's London-listed shares ended slightly above the flatline, but have dropped 5% this week.

Earlier this week, it was announced that the two companies were in talks. If the deal goes through, Rio Tinto will become one of the largest suppliers of lithium, following only Albemarle and SQM.

Rio Tinto CEO Jakob Stausholm stated that the acquisition is a crucial move in Rio Tinto's long-term strategy, establishing a top-notch lithium business alongside its leading aluminum and copper operations to provide the materials required for the energy transition.

Arcadium Lithium CEO Paul Graves stated that his company was "assured that this is a captivating cash offer that accurately reflects the long-term worth of our enterprise and safeguards our shareholders from the risks associated with executing our development portfolio and market fluctuations."

As mining companies look to obtain crucial minerals for the global energy shift, lithium prices have been affected by Chinese excess supply. The benchmark 99.2% lithium carbonate price has dropped by more than 20% year-to-date to $10,800 per metric ton, according to FactSet data.

Graves stated that the deal would enable the company to speed up and broaden its strategy, resulting in benefits for customers, employees, and the communities in which the company operates.

In May, a mega merger between BHP Group and Anglo American fell apart after BHP withdrew its firm offer for Anglo, following Anglo's rejection of an extension of takeover talks. The proposed acquisition aimed to establish a dominant copper mining company and capitalize on the metal's importance in the transition to green energy.

In a Tuesday note, CreditSights' analysts led by Wen Li stated that M&A is a better option for Rio Tinto to quickly gain exposure to lithium, as opposed to investing billions in greenfield projects in high-risk jurisdictions that may not be successful.

The analysts stated that the deal would enable Rio Tinto to acquire lithium assets and rapidly expand through brownfield investments.

—CNBC's Karen Gilchrist and Ganesh Rao contributed to this article.

The current market value for Arcadium Lithium has been updated in this story.