Australian biomass technologies firm Verdant Earth Technologies Limited and the special purpose acquisition company (SPAC) Alteration Earth PLC have mutually agreed to terminate discussions regarding their planned merger to go public on the London Stock Exchange.
In a statement released on Monday, Alteration Earth PLC cited current market conditions, the scale of the proposed transaction, and uncertainties surrounding project approval timelines as reasons for the decision.
“We regretfully announce the cessation of negotiations with Verdant Earth Technologies,” stated Alteration Earth PLC in their announcement.
Initially announced a year ago, the non-binding agreement between Verdant and ALTE proposed a potential all-stock deal valued at GBP 125 million (USD 158.2 million / EUR 147.5 million).
Verdant Earth Technologies, established in 2018, specializes in renewable energy asset ownership, operation, and development across sectors such as bioenergy, battery energy storage, hydrogen, and hydropower. The company embarked on its first project in 2018 by acquiring the coal-fired Redbank Power Station, slated for conversion to operate on renewable biomass.
Following the cessation of merger talks, Alteration Earth PLC intends to pursue alternative opportunities with companies operating in different industries, with ongoing discussions already underway under non-binding agreements.
The decision marks a strategic shift for both parties amid evolving market dynamics, signaling a focus on exploring new avenues for growth and expansion beyond the originally planned merger.
