China Union and Lithium Chile amend USD 175 million Arizaro acquisition amid Canadian regulatory review

China’s China Union and Canada’s Lithium Chile extend the sale of the Arizaro lithium project in Argentina and relax its terms while awaiting regulatory approvals.

Chinese company China Union Holdings (CUH) and Canadian company Lithium Chile have amended the terms of their agreement for the acquisition of the Arizarolithium project, located in Argentina’s Salta province, in a deal valued at approximately USD 175 million. The amendment, announced on 21 October 2026 and effective from 20 October, responds to the need to complete pending regulatory procedures in China and Canada.

The transaction involves China Union’s acquisition of all the shares in Argentum Lithium S.A., an Argentine company that holds a 62.2% interest in ARLI S.A., which owns the Arizaro project. The deal represents a Chinese investment in Argentina’s lithium sector, although its completion remains subject to regulatory approvals and other closing requirements.

The contractual amendment is particularly significant because the Canadian government has intervened in a deal involving assets located in Argentina, prompting debate over the extraterritorial reach of foreign investment review mechanisms on national security grounds.

New deadlines and conditions for completing the acquisition

The supplemental agreement sets a new deadline for closing the deal of 22 December 2026, replacing the previous deadline of 20 October.

If the acquisition has not been completed by then, the deadline may be automatically extended to 22 February 2027, provided neither party has notified the other in writing that it reasonably considers it impossible to obtain the necessary regulatory approvals during that additional period.

Pending procedures include Chinese approvals or registrations for outbound direct investment, known as Outbound Direct Investment (ODI), and the national security review initiated by Canada.

The amendment also expressly addresses the return of the USD 5 million security deposit paid by the buyer. If certain essential regulatory approvals have not been obtained by the applicable deadlines for reasons not attributable to China Union, the deposit must be returned in accordance with the agreed terms.

These provisions reflect the importance of allocating regulatory risks by contract in cross-border deals, particularly where multiple jurisdictions and sectors considered strategic are involved.