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Sale of Atlantic Nickel and Mineração Vale Verde to Spac ACG Acquisition Company: A new transaction in the mining sector
Manager Appian closed an agreement to sell its subsidiaries, Atlantic Nickel and Mineração Vale Verde, to Spac ACG Acquisition Company, a company listed on the London Stock Exchange, which owns a large mining company and automakers. Atlantic Nickel and Mineração Vale Verde are owners of nickel and copper mines Serrote and Santa Rita. These mines had been sold to South African mining company Sibanye Stillwater last year, but the contract was terminated by the buyer.
Strategic partnership between mining company, automaker and investment fund
Spac ACG is made up of a group of investors, including mining company Glencore, automaker Stellantis (result of the merger between Fiat Chrysler and Peugeot) and the mining investment fund La Mancha Resource Capital. These investors will own 51% of the company resulting from the transaction.
In addition, the automaker's battery production subsidiary Volkswagen, PowerCo will also participate in the operation with a prepayment of future ore demand. The business also has the support of banks such as ING and Societe Generale.
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The acquisition of Atlantic Nickel and Mineração Vale Verde was valued at $1 billion, with the transaction being done in cash and free of debt. In addition, Appian will retain a 2,75% smelter royalty in the Santa Rita mine, which will provide ongoing financial benefits for the company. This strategic sale will allow Appian to focus on other investment opportunities in the mining area.
Advising renowned banks on the transaction for the sale of Atlantic Nickel and Mineração Vale Verde
Throughout the sale process, Appian relied on the assistance of banks Standard Chartered and Citi. These financial institutions assisted Appian in the negotiation and ensured a successful transaction.
This transaction marks a new phase in the mining sector, bringing about a strategic partnership between a mining company, an assembler and an investment fund. The entry of large assemblers and investment in the mining industry demonstrates the growing interest in the sustainable production of minerals essential for the manufacture of batteries and electric vehicles.
The sale of Atlantic Nickel and Mineração Vale Verde to Spac ACG Acquisition Company represents an opportunity for growth and strengthening of the sector, boosting the development of mineral resources around the world, mainly among automakers and mining companies.
