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

Global mining company Glencore, automaker Stellantis, and Volkswagen’s battery unit PowerCo are supporting a $1 billion acquisition by SPAC fund ACG Acquisition Company (LON: ACG) to purchase two Brazilian mines.

ACG will acquire the Santa Rita nickel sulfide and Serrote copper mines from private equity 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 EV 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 CEO of ACG, Artem Volynets, who previously headed En+ Group and orchestrated the Hong Kong IPO of aluminum producer Rusal, is leading the acquisition. This agreement aligns with the recent rise in mining mergers and acquisitions driven by expectations of increased metal demand for the green energy transition.

Information for this story was found via Reuters. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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