To recap, a SPAC is a newly formed cash shell company that raises its cash from investors based on a stated specific, or generic, acquisition strategy and the reputation of its founders or sponsors and is listed pending that acquisition, upon completion of which it "de-SPACs". The benefits of a SPAC structure include that the process for listing a SPAC and then "reversing" a target operating business into it is speedier and less-restrictive than taking the target itself through the IPO process.
On 3 March 2021 Lord Jonathan Hill published his report following the review of the UK's listing regime. His wide-ranging recommendations to increase the attractiveness of London as a market include a focus on many of the relative disadvantages of the London market as regards SPACs in the US markets that were highlighted in our previous thought leadership.
In the report Lord Hill stated its aim:
"was not about opening up a gap between us and other global centres by proposing radical new departures to try to seize a competitive advantage. It is about closing a gap which has opened up"
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