X-Energy, Ares Acquisition To Terminate Merger; Ares Up In Pre-market

(RTTNews) - X-Energy Reactor Company, LLC, a developer of advanced small modular nuclear reactors, announced Tuesday that it has mutually agreed to terminate merger agreement with Ares Acquisition Corp. (AAC), a special purpose acquisition company of Ares Management Corp. (ARES), effective immediately.

In December 2022, X-Energy entered into a definitive business combination agreement with AAC's special purpose vehicle, and the transaction was expected to close in the fourth quarter of 2023.

As per X-Energy, the company received strong interest from potential investors but due to challenging market conditions, peer-company trading performance, and the drawbacks of becoming a publicly traded company under current circumstances, both the companies involved decided not to proceed with the merger.

Neither party will be required to pay the other a termination fee.

AAC intends to dissolve, liquidate, and redeem all of the outstanding ordinary shares with a par value $0.0001 per share on or about November 7.

AAC expects the last day of trading to be November 6 and as of November 7, the trading of the public shares will be suspended. In pre-market activity, AAC shares are trading at $10.77 up 9.23% on the New York Stock Exchange.