Updates with details on deal in paragraphs 2-6

Nov 19 (Reuters) - Australia's Sayona Mining SYA.AX will buy U.S.-based Piedmont Lithium PLL.O in an all-stock deal that will consolidate its Canadian operations and strengthen its exposure to the North American electric vehicle sector, the companies said on Tuesday.

The firms did not disclose a deal value. They did not immediately respond to Reuters' requests for comment.

Under the deal, the two companies will merge to create a lithium business, with Sayona becoming the parent entity. Sayona and Piedmont shareholders will own the combined entity approximately evenly.

As part of the merger, Sayona will raise A$40 million ($26.04 million) through a capital raise and A$69 million through a conditional placement of shares. Piedmont will issue shares worth $27 million.

The Australian lithium market is reeling from rapid supply growth that has outpaced strong demand projections, as the adoption of electric vehicles has been slower than expected.

The combined entity will have an estimated pro-forma market capitalisation of $623 million, both companies said.

($1 = 1.5361 Australian dollars)

(Reporting by Roshan Thomas and Rajasik Mukherjee in Bengaluru; Editing by Abinaya Vijayaraghavan)

((Roshan.Thomas@thomsonreuters.com;))