TECH - Stellantis-Mercedes Joint Venture Nears Huge $4.7 Billion Debt Deal For EV Expansion: Report | Benzinga
Stellantis NV (NYSE:STLA) and Mercedes-Benz Group AG are reportedly on the brink of securing a €4.4 billion ($4.7 billion) debt deal for their electric-car battery venture in Europe.
What Happened: Bloomberg reported on Thursday that the Automotive Cells Company SE (ACC), a joint venture between Stellantis and Mercedes-Benz, is in advanced discussions with banks to finalize the debt agreement. The funds will be used to expand ACC’s French factory and establish new sites in Germany and Italy.
A consortium of commercial banks and state-owned lenders is likely to support the debt package. This move is crucial for Europe’s ambitions to develop a local electric vehicle supply chain to compete with Asia.
ACC is also planning to increase its initial €7 billion investment by modifying the shareholdings of its third backer, TotalEnergies SE’s Saft. Stellantis and Mercedes are expected to raise their equity stakes in ACC.