The $1bn Metals Deal That Didn’t Stick

ACG's Big Swing

ACG Acquisition Co had a plan - buy a nickel and copper mine from Appian Capital for a cool billion. This wasn’t just any purchase. It was a gamble on metals vital for green energy. With heavy hitters like Glencore, Chrysler’s parent Stellantis, and Volkswagen's battery branch, PowerCo, backing the play, it seemed like a done deal.

Investors Get Cold Feet

Even with big names in the mix, minority investors weren't biting. ACG's attempt to gather $300 million in equity didn’t go as hoped. China’s recent shaky economic stats didn’t help, casting a shadow on the world of metals. And when nickel prices took a 37% nosedive this year, with copper following (though just by 2%), the alarms started ringing.

Deal Drama Behind the Scenes

Gossip from the grapevine? Some say the deal's price tag was just too high, especially given nickel's price drop. Appian Capital was ready to stick to the original plan, but not everyone was on the same page. One of the big investors wanted a change, especially after seeing ACG struggle to raise funds.

The SPAC Lowdown

For those not in the know, SPACs (or ‘blank-cheque companies’) are like business matchmakers. They collect cash, then find a private company to merge with, turning it public. ACG was gunning to be London’s first mining SPAC. Quite the feather in their cap, if it had happened.

Déjà Vu for Appian?

This isn't Appian's first rodeo with deal troubles. They once took legal action against South Africa's Sibanye-Stillwater for pulling out of a deal for the same mines. History repeating itself?

The Bottom Line

The fall-through of ACG's deal highlights the rollercoaster world of metals and mining. As the green energy wave continues, industries and investors better buckle up for a wild ride!

Don't forget to check out our latest Special Weekly Metals News Digest (Sept 18-24)!