Glencore and Stellantis Back $1B SPAC Deal for Nickel and Copper Mines in Brazil

Global mining company Glencore, automaker Stellantis, and 's battery unit PowerCo are supporting a $1 billion acquisition by ACG Acquisition to purchase two Brazilian mines.

ACG will acquire the Santa Rita nickel sulfide and Serrote copper mines from funds with the help of Appian Capital. After the purchase, the nickel will be refined at Glencore's facilities in Western Europe and North America and used in batteries by Stellantis, PowerCo, and other manufacturers.

To finance the deal, Glencore, Stellantis, and La Mancha Resource Capital will each invest $100 million in ACG equity, while PowerCo will provide a $100 million nickel prepayment. Subsequently, ACG will rebrand as ACG Electric Metals and issue new shares, with Glencore, Stellantis, and La Mancha taking a 51% ownership, leaving the remaining 49% for free float, The Deep Dive reports.

ACG Acquisition last week said the Brazilian antitrust authority unconditionally approved its acquisition of mines in Brazil.

The SPAC, which is looking to benefit from favorable price conditions for new economy metals and other mining materials, said the Conselho Administrativo de Defesa Economica approval was of the conditions to closing the acquisition. Read more.

Source: Glencore and Stellantis Back B SPAC Deal for Nickel and Copper Mines in Brazil