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Zak Brown and Andretti together in a new company: What will they do?
- Ludo van Denderen
Michael Andretti has stepped down as owner of Andretti Global, it was announced on Friday. His former partner Daniel Towriss, the CEO of insurance and financial service company 'Group 1001' and chief investor of Andretti Global, has taken over leadership of the company with immediate effect. Moreover, Andretti does not seem to stop making changes, as He appears to have set up a new company called Acquisition Corp II. Worth noting: Zak Brown (CEO of McLaren) has joined the board as well
On 5 September 2024, Brown joined the board of directors of the new company, together with Michael Andretti and Mario Andretti, among others, 'Andretti Acquisition Corp. II'. It is a so-called SPAC, or a Special Purpose Acquisition Company. These listed companies are formed to acquire or merge with an existing company, usually by raising money through an initial public offering (IPO). In effect, a SPAC is a shell company whose business is to acquire another company.
What is Zak Brown's role?
The question, of course, is which company in which industry does Andretti Acquisition Corp II want to acquire or merge with. Also interesting: What is Zak Brown's role in all this? First of all, it is no secret that Michael Andretti and Brown get along well. For example, Andretti received support from the McLaren CEO when the Andretti team applied to join the competition. In the Australian Supercars championship, they have a joint team: Walkinshaw Andretti United.
Brown is thus a member of the board of directors of Andretti Acquisition Corp. II. As such, he can directly influence decisions on acquisitions or mergers. Incidentally, in a SPAC, investors (like Brown, that is) can get their deposited money back if they are not interested the acquisition or the merger the company would about to enter.
Given both their backgrounds, it is likely that Brown and Andretti want to use the 'SPAC' to invest in - or thus even take over - companies related to racing.
This article was written in collaboration with Kada Sarkozi
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27 September 2024
