Are there any regulatory or due‑diligence hurdles that could still impede the transaction after the new deadline?

Regulatory / due‑diligence landscape

Even with the additional month granted to Nabors Energy Transition Corp. II (NETD) to close its business combination, the deal still faces the standard regulatory and diligence milestones that can delay—or ultimately kill—a SP – target transaction. Key hurdles include:

• SEC review of the proxy and registration statements – the SPAC must file a Form 8‑K (or S‑4) that satisfies the SEC’s disclosure and “fair‑value” requirements for the target’s assets, especially any renewable‑energy or carbon‑capture assets that may be subject to ESG‑related disclosures. Any comment letter from the SEC could push the closing date further out.
  
• Antitrust / FTC clearance – if the target operates in the upstream‑energy or renewable‑energy infrastructure space, the FTC (or the EU’s competition authority, depending on the target’s geography) will review for market concentration. A “second‑request” or a request for additional information is common in energy‑sector SPACs and can add weeks.
  
• Shareholder and sponsor approvals – the SPAC’s shareholder vote, plus any “major‑shareholder” consent (e.g., a 20 % or greater holder) and the sponsor’s “lock‑up” agreements, must be satisfied. Delays in obtaining a definitive proxy statement or meeting the 90‑day voting window can create a procedural bottleneck.
  
• Financing / covenant compliance – the SPAC’s trust funds must be released only after the transaction is deemed “completed.” If the target’s debt covenants or ESG‑linked financing covenants require a final audit, any adverse finding (e.g., contingent liabilities, carbon‑credit accounting) can stall the cash‑inflow and cause a breach of the SPAC’s deadline.

Trading implications

Given these residual hurdles, the market will likely price in a modest “risk‑premium” to NETD’s share price (currently pressured, sentiment –15). The technical picture shows the stock near a recent low‑volume support zone around $10‑$11, with a descending‑triangle pattern that historically resolves in a breakout either up (if the deal clears) or down (if regulatory or diligence issues surface). Actionable take‑away: keep a tight stop‑loss just below the current support (≈ $9.80) and look for a catalyst—such as an SEC comment letter release or an FTC filing—within the next 2‑3 weeks. A clean clearance and a positive shareholder vote could trigger a short‑term rally (+15‑20 % in 2–4 weeks), whereas a regulatory “second‑request” or a delayed audit would likely trigger a further decline, making a short or protective‑put position attractive. Monitor the SEC EDGAR feed for any 8‑K filings and the FTC’s “public‑interest” docket for early warning signs.