X-Energy mutually terminates $2 billion deal to go public with Ares Acquisition

Ares Acquisition

31/10/2023 12:58

Oct 31 (Reuters) - X-Energy and blank-check firm Ares
Acquisition  AAC.N  on Tuesday mutually called off a $2 billion
deal to go public, nearly eleven months after an earlier
agreement.
    The deal's termination underscores receding enthusiasm for
special purpose acquisition companies (SPACs) as continued
economic uncertainty and squeezed investor budgets have fueled
bearish sentiment for risky bets.
    SPACs were among the hottest investment trends during the
pandemic as early-stage companies tapped them as a way of going
public.
    X-Energy had in December last year agreed to merge with Ares
to go public. In June this year, X-Energy lowered its deal value
to $1.8 billion from $2 billion.
    Given challenging market conditions, balancing of the
benefits and drawbacks of becoming a publicly traded company
under current circumstances, X-Energy and AAC jointly decided
not to proceed with previously announced deal, the companies
said.
    As of Nov. 6, AAC will cease all operations except those
required to wind up AAC's business. Ares expects NYSE to delist
its securities.
    Founded in 2009, X-Energy develops small modular nuclear
reactors and fuel technology for clean energy generation.

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by
Shilpi Majumdar)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))