$1bn metals SPAC deal backed by Glencore, automakers collapses

The Atlantic nickel pit at night

The Atlantic nickel pit at night

29th September 2023

By: Reuters


Font size: - +

LONDON - A $1-billion metals deal by blank-cheque fund ACG Acquisition Co has been terminated following delays when the different sides, which included a leading global miner and top automakers as anchor investors, tried to revise it, 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 rising demand for metals needed for the global green energy transition.

In June, global miner Glencore, Chrysler parent Stellantis and Volkswagen's battery unit PowerCo agreed to back the deal through an equity investment. It was expected to close in August.

"ACG announces today that, despite its best efforts, revisions to the acquisition agreement have not been agreed and the acquisition agreement has been terminated," ACG said in a statement.

ACG, Appian and Glencore declined to comment.

There was a lack of interest from minority investors at the stage of the $300-million equity offering which ACG planned as part of the deal, despite the presence of Stellantis and Glencore as anchor investors, several sources told Reuters.

Weak economic data from the world's largest metals consumer China, which it has reported since August, affected the investors' appetite for the deal, a source, directly familiar with the situation, told Reuters.

Nickel prices CMNI3 slumped by 37% since the start of 2023, while copper CMCU3 is down 2%.

"The deal fell apart over price," said another source familiar with the situation, adding the price was higher than the buyers considered realistic after the nickel price declined.

Appian Capital wanted the deal that was originally agreed and on the table, while one of the anchor investors sought to change their position, the third source said.

One of the buyers indeed sought to renegotiate the terms, but only after ACG's equity raise stumbled upon weak interest from investors, according to the fourth source.

SPACs are shell companies that raise money via an initial public offering (IPO) and later merge with a private company, taking it public. ACG would have been the first mining SPAC listing in London.

A year ago, Appian began legal proceedings in a $1.2-billion claim against South Africa's Sibanye-Stillwater after Sibanye pulled out of a deal to acquire the same two mines.

Edited by Reuters



KEY360 Management Platform
KEY360 Management Platform

KEY360 Platform Technology is reputedly the world’s leading Project Management and Business Optimization Solution. Award Winning KEY360 is your...

SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.


Latest Multimedia

sponsored by

Resources Watch image
Resources Watch
29th November 2023
Photo of Martin Creamer
On-The-Air (24/11/2023)
24th November 2023 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.179 0.208s - 91pq - 2rq
Subscribe Now