2023-09-28 19:02:34
A billion-dollar metals deal by hedge fund ACG Acquisition Company has been called off following delays due to review attempts by various parties, which included a leading global miner and leading automakers as anchor investors, ACG said on Thursday.
ACG, a London-listed special purpose acquisition company (SPAC), planned to buy a nickel mine and a copper mine from Appian Capital, betting on increasing demand for the metals needed to transition to green energy globally.
In June, international mining group Glencore, Chrysler parent Stellantis and Volkswagen’s battery unit PowerCo agreed to support the deal through an equity investment. The transaction was scheduled to close in August.
“ACG announces today that, despite its best efforts, revisions to the Acquisition Agreement have not been accepted and the Acquisition Agreement has been terminated,” ACG said in a statement.
ACG and Glencore declined to comment.
Weak economic data from China, the world’s biggest metals consumer, since August has affected investor appetite for the deal, a source with direct knowledge of the situation told Archyde.com.
Nickel prices have fallen 37% since the start of the year, while copper is down 2%.
“The deal fell apart because of the price. Appian wanted more for the mines than the buyers considered realistic, especially as the price of nickel fell,” said another source, familiar with the deal. situation.
Appian did not respond to Archyde.com’ request for comment.
SPACs are shell companies that raise money through an initial public offering (IPO) and then merge with a private company to take it public. ACG would have been the first mining SPAC to list in London.
According to a banking source, minority investors have not expressed interest at the stage of ACG’s planned $300 million share offering as part of the deal, despite the presence of Stellantis and Glencore in as anchor investors.
A year ago, Appian began legal proceedings in a $1.2 billion lawsuit once morest South African company Sibanye-Stillwater, following Sibanye pulled out of a deal to acquire the two same mines. (Reporting by Polina Devitt and Clara Denina; Editing by Timothy Gardner)
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