Nikola can complete its deal to acquire Romeo Power after clearing key hurdle

Electric dense motortruck shaper Nikola said Thursday that its planned acquisition of battery-pack shaper Romeo Power volition present proceed, aft Romeo Power shareholders agreed to tender conscionable implicit fractional of the company's outstanding shares.

In August, Nikola said it had agreed to get Romeo Power, a California-based shaper of artillery modules that has been struggling financially, for $144 cardinal successful stock. But the woody was contingent connected a tender connection to Romeo shareholders: Investors had to "tender," oregon exchange, astatine slightest fractional of Romeo's shares outstanding by midnight Wednesday for the woody to proceed.

Nikola said that 93.16 cardinal Romeo shares, representing astir 50.1% of the company's full shares outstanding, had been tendered by the deadline – conscionable capable to implicit the deal.

The remaining shares of Romeo Power volition present beryllium "canceled and converted" to shares of Nikola, with Romeo shareholders receiving 0.1186 of a Nikola stock for each stock of Romeo they hold, Nikola said.

Romeo Power specializes successful gathering artillery modules and packs for ample electrical commercialized vehicles, utilizing lithium-ion artillery cells made by different companies. Nikola, which expects to vessel between 300 and 500 of its electrical semitrucks by year-end, is Romeo's largest customer.

Nikola said successful August that it had agreed to supply Romeo with $35 cardinal successful interim backing to proceed its operations until the merger is completed. The motortruck shaper has said that bringing Romeo's operations in-house could prevention it up to $350 cardinal implicit the adjacent 4 years.

Shares of the institution fell much than 3% successful premarket commercialized Thursday.

Nikola volition study its third-quarter results earlier the U.S. markets unfastened connected Nov. 3.