LanzaTech NZ Inc said on Tuesday it plans to go public by merging with special purpose acquisition company AMCI Acquisition Corp II, in a deal that values the carbon recycling technology company at $2.2 billion.

The deal is expected to raise gross proceeds of nearly $275 million, comprising AMCI's $150 million cash held in a trust account and a private investment in public equity (PIPE) of nearly $125 million funded by investors including ArcelorMittal and BASF.

A SPAC typically sells shares at $10 apiece, puts the cash in a trust account, and then searches for a company with which it can merge, taking the merged company public in the process.

Illinois-headquartered LanzaTech says it harnesses biology and data to create climate-safe materials and fuels and also recycles carbon waste.

The deal is likely to close in the third quarter of 2022 and the combined company is expected to trade on the Nasdaq under the symbol "LNZA"

(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shinjini Ganguli and Vinay Dwivedi)