DeepGreen Metals Said In Talks to Go Public Via Sustainable SPAC
(Bloomberg) -- DeepGreen Metals Inc., which plans to produce metals used in electric-vehicle batteries, is in talks to go public through a merger with Sustainable Opportunities Acquisition Corp., a blank-check company, according to people with knowledge of the matter.
Sustainable Opportunities has begun discussions to raise new equity from potential investors for a transaction that’s set to value the combined entity at about $2.8 billion, said the people, who asked not to be identified because the talks are private. The special purpose acquisition company is seeking to raise around $200 million to fund the deal, an amount that may be increased, said some of the people.
A deal, if agreed, could be announced in coming weeks. It’s possible terms change or talks fall apart. Representatives for DeepGreen and Sustainable Opportunities declined to comment.
DeepGreen, led by Chairman and Chief Executive Officer Gerard Barron, is working to produce metals from polymetallic rocks to power electric vehicles. Production is set to begin in 2024.
“Electric vehicles and renewable energy are part of the solution, but we know that scaling these globally will require hundreds of millions of tons of new metals,” the company said on its website. “We believe that producing these urgently needed battery metals from polymetallic nodules from the deep ocean is society’s best option.”
Dallas-based Sustainable Opportunities, led by CEO Scott Leonard, in May raised $300 million and said it was seeking a target focused on carbon reduction and green business practices.
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