SPACs in the U.S. vs. the U.K.

Minneapolis corporate partner Kate Sherburne and London corporate partner Melanie Wadsworth coauthored an article for Global Banking & Finance Review titled “SPACs in the U.S. vs. the U.K.”

In the article, the authors provide background on the U.S. special purpose acquisition company (SPAC) structure and the increase of U.S. SPACs completed in 2021. Sherburne and Wadsworth then address why a similar “SPAC attack” has not been seen in the U.K.

The authors highlight regulatory features of the U.K. markets which currently make a SPAC IPO a less attractive option than in the U.S. The article notes that the Financial Conduct Authority recently announced a consultation on these proposed changes with hopes that these changes will generate greater traction for SPACs in the U.K., while providing a measure of protection for investors.