(Bloomberg) — Polestar, the electric car maker controlled by Volvo Car AB and its owner Zhejiang Geely Holding Group Co., has approved a merger with the blank check company Gores Guggenheim Inc., according to people in the know. the matter.
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The deal could be announced as early as Monday, the people said, who asked not to be identified because the information was private. The combined company would be valued at about $20 billion including debt, one of the people said.
The terms or timing of a final agreement may still change, the people said.
A representative for Gores Guggenheim declined to comment. A Polestar spokesperson did not immediately respond to a request for comment.
Polestar, based in Gothenburg, Sweden, is a rival to Tesla Inc. and EV maker Lucid Motors. Bloomberg News reported in June that the company was in talks with Gores Guggenheim. The Wall Street Journal reported earlier Sunday that the two were nearing an agreement.
The company’s second vehicle and first all-electric vehicle, the Polestar 2, began production at Geely’s plant in Luqiao, China, in March. Last September, the automaker said it would put another car, the Polestar Precept, into production. In June, the company said the Polestar 3 – an SUV – will be built in Ridgeville, South Carolina, at a plant opened by Volvo Cars in 2018.
Gores Guggenheim, led by Chairman Alec Gores and Chief Executive Officer Mark Stone, is sponsored by subsidiaries of Gores Group and Guggenheim Capital. It raised $800 million in an IPO in March.
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