© Reuters. FILE PHOTO: The logo of commodities trader Glencore is pictured in front of the company’s headquarters in Baar, Switzerland, September 30, 2015. REUTERS/Arnd Wiegmann/File Photo
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LONDON (Reuters) – Global miner Glencore (OTC:), Chrysler parent Stellantis and Volkswagen (ETR:)’s battery unit PowerCo have agreed to back a $1 billion deal by blank-cheque fund ACG Acquisition Company to buy two mines in Brazil, two sources, familiar with the deal told Reuters on on Monday.
The deal, which is expected to be announced on Monday, comes as a mining M&A spree picks up, spurred in part by investors betting on rising demand for metals needed for the global green energy transition in coming years.
ACG, a London-listed special purpose acquisition company (SPAC), will buy the Santa Rita nickel sulphide and Serrote mines from private equity funds advised by Appian (NASDAQ:) Capital, the sources said.
SPACs are shell companies that raise money via an IPO and later merge with a private company, taking it public.
Only a few such deals have taken place in mining, including Vision Blue Resources, a fund founded by former Xstrata boss Mick Davis backing a $300 million SPAC and Metals Acquisition Corp, which listed in New York and bought a copper mine owned by Glencore.
Reuters
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