$1B SPAC deal backed by Glencore, automakers collapses

A $1 billion metals deal brokered by fund ACG Acquisition Company was canceled after delays as different parties, including a global miner and major automakers as anchor investors, attempted to review it, ACG said on Thursday.

ACGa London-listed special purpose acquisition company (SPAC), planned to buy a nickel mine and a copper mine from Appian Capitalbetting on the growing demand for metals necessary for the global transition to green energy.

In June, the mining company Glencore; Stellantis, matrix Chryslerand the battery unit PowerCo of Volkswagen agreed to support the business through an equity investment. The transaction was expected to be closed by August.

“ACG announces today that, despite its best efforts, no changes to the Acquisition Agreement have been agreed upon and it has been terminated”the company said in a statement.

ACG and Glencore They declined to comment.

Weak economic data from China – the world’s biggest metals consumer – reported starting in August has dented investor appetite for the deal, a source directly familiar with the situation told Reuters.

Nickel prices have fallen 37% so far this year, while copper has lost 2%.

“The deal fell through because of the price. Appian wanted more for the mines than buyers considered realistic, especially as the price of nickel has fallen”said another source.

Appian did not respond to a Reuters request for comment.

The SPAC They are shell companies that raise money through an initial public offering (IPO) and then merge with a private company, taking it public. ACG would have been the first mining SPAC to list in London.