X-Energy and blank-check firm Ares Acquisition 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.
