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Latham & Watkins Advises on ACG’s US$1 Billion Acquisition of Two Mines in Brazil

June 12, 2023
London team represents placement agents in innovative de-SPAC transaction, creating major new force in global critical metals focused on the western electric vehicle value chain.

Latham & Watkins advised the placement agents on ACG Acquisition Company Limited’s de-SPAC acquisition of two cash-generative mining operations in Brazil, producing nickel sulphide and copper concentrates with low carbon emissions. Critical minerals mined at the Brazilian sites will be refined in Europe and North America and then supplied to car manufacturers, fortifying the electric vehicle supply chain in western countries.

The Atlantic Nickel nickel sulphide mine in Santa Rita and the Mineraçao Vale Verde copper mine in Serrote will be acquired on a cash- and debt-free basis from funds advised by Appian for an enterprise value of US$1.0 billion. The transaction is supported by US$100 million commitments to subscribe for ACG equity from each of Glencore, Stellantis, and La Mancha, and a US$100 million prepayment from a subsidiary of Volkswagen.

The Latham team was led by London corporate partner James Inness, with associates Phoebe Richardson and Koushik Prasad. Advice on US capital markets matters was provided by London partner David Stewart, with associates Yolanda Min and Heri Mwapachu.