Iveco, the Italian commercial vehicle manufacturer, has successfully concluded its acquisition of the electric and fuel cell truck joint venture in Ulm, Germany with Nikola Corporation, as previously announced in May. As part of the deal, the joint venture will be rebranded as EVCO (Electric Vehicles COmpany).
According to the Iveco Group, the definitive agreements with Nikola Corporation have been finalized, adhering to the terms disclosed on May 9, 2023. As a result, Iveco now holds permanent and exclusive ownership of the German company. Notably, the Nikola name has been removed from the venture’s designation, and it will now operate solely under the name EVCO.
Iveco expressed its commitment to taking a prominent role in zero-emission heavy-duty transport through the successful completion of this acquisition. The brief announcement emphasized the company’s dedication to the advancement of eco-friendly transportation.
However, while the current statement asserts “full and sole ownership,” the tone was different when the partnership was initially announced in May. At that time, the companies referred to it as the “next phase of the partnership.” For Iveco, it represented a strengthening of their electric truck business, while for Nikola, it marked a strategic shift away from the European market, focusing on heavy haulage instead.
Regarding the purchase price for the EVCO unit, Iveco reportedly paid $35 million in May and also acquired 20 million Nikola shares. Since the share price at that time was precisely one dollar, this amounted to an additional $20 million. As the deal was concluded under the terms announced earlier, there have been no modifications to the agreed-upon figures.
Meanwhile, changes are underway in Nikola’s US operations. The company recently announced its intention to initiate the liquidation of assets belonging to battery manufacturer Romeo Power, which it had acquired less than a year ago. This move aligns with Nikola’s restructuring plans, disclosed in May 2023, which included the potential sale of the Romeo Power business.
