Fuel maker XCF Global Capital to go public in $1.75-bln SPAC deal (updated)

XCF Global

29/12/2023 16:58

(Adds more details throughout)
       Dec 29 (Reuters) - XCF Global Capital has agreed to go
public via a merger with special purpose acquisition company
(SPAC) Focus Impact BH3 Acquisition, in a deal that values the
sustainable fuels producer at $1.75 billion, the SPAC said on
Friday.
    New York-based XCF Global, which owns multiple facilities in
North America, produces renewable diesel and has planned a
strategic expansion into sustainable aviation fuel and other
biofuels.
        SPACs have largely fallen out of favor following a
frenzy of deals in 2020 that invited intense scrutiny from the
U.S. securities regulator. But smaller private companies still
prefer mergers with SPACs, since this lets them sidestep a
lengthy initial public offering (IPO) process.
  
        Last week, Powermers Smart Industries, a commercial
transportation and industrial equipment maker focused on
reducing greenhouse gas emissions, also 
    agreed
     to go public in a SPAC deal valued at around $2 billion.
  
        Also called blank-check firms, SPACs use proceeds from
their IPOs to merge with private firms.
  

 (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by
Pooja Desai)
 ((ArasuKannagi.Basil@thomsonreuters.com;))