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Latham & Watkins Advises X-energy in De-SPAC Business Combination With Ares Acquisition Corporation

December 6, 2022
Members of the firm’s capital markets, M&A, and tax practices represent the developer of small modular nuclear reactors and fuel technology for clean energy generation. 

X Energy Reactor Company, LLC (X-energy), a leading developer of small modular nuclear reactors and fuel technology for clean energy generation, and Ares Acquisition Corporation (NYSE: AAC), a publicly-traded special purpose acquisition company, have announced that they have entered into a definitive business combination agreement. The combination will establish X-energy as a publicly-traded developer of a more advanced small modular reactor and proprietary fuel that supports the transition to clean, affordable energy through enhanced safety, lower cost, scalability, and broader industrial applications. The transaction is expected to be completed in the second quarter of 2023. Upon the closing of the transaction, the combined company will be named X-Energy, Inc., and its common equity securities and warrants will be listed on the New York Stock Exchange.

Latham & Watkins LLP represents X-energy in the transaction with a corporate deal team led by Washington, D.C. partners Rachel Sheridan, Nick Luongo, and Paul Sheridan, with associates Bryan Ryan, Clayton Mark, Ziyad Barghouthy, Haley Sandoval, Catherine Sims, Hanks Bird, John Slater, Sara Johnson, and Amy Dau. Advice was also provided on tax matters by Houston partners Tim Fenn and Jared Grimley, with associates Christine Mainguy and Chelsea Munoz-Patchen; and on benefits and compensation matters by Los Angeles partner Michelle Carpenter, with associate Charity Wyatt.