A rumor stating that Arrival (an electric vehicle company — specifically busses and vans) is expected to go public through a merger with blank-check company CIIG Merger (CIIC).
CIIG, a special purpose acquisition company, is in discussions with investors about raising $400 million to $500 million in new equity to support a transaction for the startup, said some of the people, who asked not to be identified because the matter is private. The enterprise value of the combined company is set to be $5 billion to $6 billion.
Terms could change, and as with any deal that hasn’t been finalized, talks could collapse. A representative for Arrival didn’t immediately respond to an email seeking comment, and CIIG declined to comment.
Arrival has said its other investors include Hyundai Motor Co., Kia Motors Corp. and United Parcel Service Inc. UPS has ordered 10,000 vehicles equipped with advanced driver-assistance systems such as automated braking and lane-change warnings, which could lead to autonomous movements within the company’s facilities.
Annual electric van sales will grow to 2.3 million units in the U.S., Europe and China by 2030, analysts has estimated, projecting that large fleet operators such as Amazon.com Inc., DHL and Anheuser-Busch InBev SA will drive demand.
Other electric-vehicle startups including Nikola Corp. and Fisker Inc. have agreed to go public through SPAC mergers, and Lion Electric Co. is among companies pursuing a blank-check deal.
CIIG, led by chairman and CEO Peter Cuneo, raised about $260 million in a December 2019 initial public offering.
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