European Lithium (ASX:EUR) is said to be in talks with Critical Metals for a AU$0.58-per-share bid for European Lithium, resulting in a deal value of around AU$1.16 billion, the Australian Financial Review (AFR) reported on Monday, citing unnamed people familiar with the discussions.

European Lithium owns 37.5% of the Nasdaq-listed Critical Metals. The Tanbreez rare earths mine in Greenland and the Wolfsberg lithium project in Austria are said to be the driving force behind the merger.

Critical Metals received regulatory approval to own 92.5% of the Tanbreez mine on April 20, while European Lithium received approval to own a 7.5% stake.

An ASX announcement is expected to be made as early as Tuesday, per the report.

European Lithium did not immediately respond to an emailed request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)