Carousell drops SPAC deal talks with L Catterton amid shaky stock market

Carousell has dropped discussions on going public through a SPAC merger with L Catterton Asia Acquisition Corp. citing market volatility, Bloomberg reported, citing sources with knowledge of the situation.

The blank-check company failed to reach an agreement with the Singapore-based online marketplace. This comes after months of conducting due diligence on Carousell for the would-be deal, the sources said.

According to the report, Carousell and L Catterton ended talks as rocky stock market performance made it difficult for the pair to agree on a private investment in public equity. Shares of L Catterton’s acquisition entity have fallen to their lowest values in more than a month.

Carousell declined to comment on Bloomberg‘s request, while L Catterton did not immediately respond.

In January, the two companies in January were reportedly in talks for a SPAC merger deal that would value the joint entity at US$1.5 billion. The news came after L Catterton launched its blank-check firm that secured US$250 million in an IPO in February 2021.