👉 Background: In early September this year, US-based miner Albermarle made whopping $6.6 billion takeover offer for Aussie lithium miner Liontown Resources - which the Liontown board is recommending shareholders approve.

👉 What happened: Now, Gina Rinehart's Hancock Prospecting is cutting Albermarle's lunch after buying up $970 million worth of Liontown's shares, or nearly 15% of the company. And this chunky stake could give Hancock Prospecting enough power to block the acquisition offer.

👉 What else: Rinehart hasn't said if she's planning a full takeover of Liontown Resources, but she's made it clear Hancock Prospecting wants to be a partner in Liontown's lithium project.

What's the key learning?

💡A strategic investment is a way to have a seat at the table without owning the whole table itself.

💡This year, we've seen a range of Australian companies buy up stakes in other companies to have greater control and influence.

• Australian Super bought an additional 1.02% of shares in Origin Energy with the goal of blocking an $18.7 billion acquisition
• Premier Investments has a nearly 30% stake in Myer with the goal of gaining board seats and helping reset the strategy

💡By holding a significant chunk of shares, Hancock can influence decisions, access information, or even block moves by other potential acquirers... like Albermarle.

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