Glencore, automakers to back $1 bln nickel, copper SPAC deal in Brazil

Global miner Glencore (GLEN.L), Chrysler parent Stellantis (STLAM.MI) and Volkswagen’s (VOWG_p.DE) battery unit PowerCo have agreed to back a $1 billion deal by blank-cheque fund ACG Acquisition Company to buy two mines in Brazil, ACG said 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 (ACGa.L), a London-listed special purpose acquisition company (SPAC), will buy the Santa Rita nickel sulphide and Serrote copper mines from private equity funds advised by Appian Capital, which has hired Standard Chartered and Citigroup on the sale, it said in a statement.

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.

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