Exor’s Iveco electric trucks and Nikola’s American trucks go their separate ways

9 May 20231 year ago babelfish

With the acquisition of the joint venture, Iveco Group will focus on Europe, Nikola in turn will focus its activities on North America. Here is the weight of the operation on Iveco's accounts that make the stock market mumble

A joint venture that lasted five years and arrived today at its destination: the Iveco Group and the Americans of Nikola are in fact taking different paths. In the official note, the parties speak of the start of a "new phase", which will see "each of the two companies concentrate on their reference market in heavy transport". That is to say Nikola will look to the United States while Iveco to the Old Continent.

DETAILS OF THE SEPARATION BETWEEN IVECO AND NIKOLA

But that's not all, because the Exor subsidiary (42.5% of the voting rights) acquires full control of the joint venture which is based in Ulm, Germany . Also included in the package is an unlimited license to use and further develop the control software for jointly developed hydrogen and battery-powered vehicles with an outlay partly in cash of 35 million and partly in shares, with 20 million shares of Nikola .

Nikola, for its part, will obtain from the Iveco Group the license for the IVECO S-Way technology for North America and the related supply of components, acquiring the co-ownership of the intellectual property of the first generation electric axles, a technology developed together with FPT Industrial, the brand of Iveco Group specialized in propulsion systems.

NEGATIVE CASH IMPACT FOR IVECO

The Exsor subsidiary has already taken into account that with the acquisition of the 100% stake in the joint venture with Nikola Corporation in Europe, Iveco Group will record a one-off negative impact of 44 million euros in the income statement for the first quarter of 2023, qualified as "adjusting item” for the purposes of adjusted metrics. Iveco Group expects to absorb the negative cash impact of this transaction through cash flow generation, without changing its cash flow target for 2023.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/i-camion-elettrici-iveco-di-exor-e-quelli-americani-di-nikola-prendono-strade-separate/ on Tue, 09 May 2023 12:49:21 +0000.