AXIOS Sustainable Growth Acquisition Corporation has signed a non-binding letter of intent for a business combination with one of Europe’s largest and most sustainable farming enterprises. The Target boasts over 18,000 hectares of agricultural land in one of the world’s most fertile regions. It is particularly interested in expanding its farming operations with a focus on irrigated land and vertical integration to regionalize raw material supply and processing of agricultural goods.
As part of the proposed business combination, Target’s existing equity holders would roll 100% of their equity into the combined public company, with initial non-binding investment indications of approximately $50 million in total having already been secured from existing AXIOS sponsors and certain strategic partners. Further details regarding firm commitments from investors and additional information about the proposed merger are expected to be announced in the second quarter of 2023.
Completing the business combination is subject to a range of factors, including the completion of due diligence, negotiation of a definitive agreement, the satisfaction of conditions, and approval by the board and stockholders of both AXIOS and Target. Nevertheless, the non-binding letter of intent represents a significant step forward for both companies and could represent a major new force in the European agribusiness landscape.
With a renewed focus on sustainable agriculture and the responsible use of natural resources, the proposed merger could be a powerful driver of positive change in the industry. Moreover, by expanding its operations carefully controlled and responsibly, the combined entity could be a leading example of balancing commercial success with environmental responsibility in the 21st century.
