Iveco Group To Take Full Ownership Of JV With Nikola

(RTTNews) - Iveco Group N.V. (IVG) and Nikola Corporation (NKLA) on Tuesday announced that Iveco Group will assume full ownership of the joint venture in Ulm, Germany.

Under the new partnership agreement, Iveco Group will be allowed to continue developing the vehicle control software for the jointly developed battery electric and fuel cell electric vehicles. Meanwhile, Nikola will receive a license for the IVECO S-Way technology in North America and related component supply from Iveco Group. Additionally, Nikola will have joint ownership of the intellectual property for the Generation 1 eAxles technology that was created with Iveco Group's powertrain brand, FPT Industrial.

Iveco Group will use its available liquidity to cover the costs related to the new collaboration phase, which includes acquiring certain items in cash ($35 million) and the remaining amount in Nikola shares (20 million shares). Despite the negative cash impact, Iveco Group expects to cover the costs through cash flow generation and maintain its cash flow target for 2023. Additionally, Iveco Group will still retain a significant amount of Nikola shares. The financial details of the deal are not disclosed.

Nikola is currently trading down $0.1328 or 13.48% at $0.8521 in its regular trading session.