By Josh Beckerman


Two blank-check companies backed by SoftBank Group Corp.'s Fortress Investment Group will shut down and return cash to shareholders, saying that completing "suitable" mergers is "highly improbable."

Fortress Value Acquisition Corp. III had until Jan. 7, 2023, to complete a deal, and Fortress Value Acquisition Corp. IV had a March 18, 2023, deadline.

The companies said that because redemptions after Dec. 31 may be subject to a 1% excise tax under the Inflation Reduction Act of 2022, it is in "shareholders' best interest" to return the cash in trust in 2022 rather than wait for expiration in 2023. Each will hold a stockholder meeting in November.

After many high-profile deals for special purpose acquisition companies, the category has faced challenges including accounting issues and the disappointing post-merger performance of some companies. "SPAC King" Chamath Palihapitiya is winding down two vehicles.

Two earlier Fortress SPACs completed deals for MP Materials and ATI Physical Therapy Inc.


Write to Josh Beckerman at josh.beckerman@wsj.com


(END) Dow Jones Newswires

10-12-22 1909ET