- The merger is expected to be completed in the second quarter
- The deal with U.S.-based Sustainable Opportunities Acquisition Corp will value the combined entity at $2.9 billion
As per a report by Reuters, Canada’s DeepGreen Metals Inc, which aims to produce metals for use in electric vehicle batteries through deep-sea mining, plans to go public in a merger with a special purpose acquisition company (SPAC).
The report added that the deal with U.S.-based Sustainable Opportunities Acquisition Corp will value the combined entity at $2.9 billion and include a $330 million infusion from investors including Allseas Group SA, Maersk Supply Service and Glencore as per a statement by the company. The merger is expected to be completed in the second quarter.
It added that DeepGreen intends to produce from 2024 metals from polymettalic rocks, found deep in the Pacific Ocean, for use in batteries that will be used in power electric vehicles (EVs).
SPACs are shell companies which raise funds to pursue an acquisition at a later date
The report added that Greenpeace has stepped up its advocacy against the activity in recent months. Greenpeace spokeswoman Nelli Stevenson said, when asked about DeepGreen’s mining plans that there is nothing sustainable about carving up the seafloor for mining. He said that the deep ocean must remain off-limits to the mining industry to prevent further biodiversity loss and potentially damaging a critical carbon sink.
SPACs are shell companies which raise funds to pursue an acquisition at a later date. The deals are an alternative to a traditional IPO for companies looking to enter public markets.
