Talison Lithium said on Wednesday that it will hold talks with Chengdu Tianqi Industry Group to determine if the Chinese company's takeover offer represents a "superior proposal," as defined under an existing friendly deal with Rockwood Holdings.

Tianqi's C$7.15-a-share offer, which values the Perth-based, Toronto-listed lithium producer at C$806 million ($807.66 million), is 65 Canadian cents a share higher than the bid from Rockwood, a U.S.-based chemical producer.

A "superior proposal" takes into account the monetary value of the offer, the likelihood of conditions being attached to a takeover, and the timing required to complete a deal.

Talison produces hard rock lithium at its Greenbushes lithium project in Western Australia, primarily for export to China. The company also owns the Salares 7 lithium brine project in Northern Chile.