ARVL - Arrival stock surges on merger announcement

2023-04-10 07:12:06 ET

Shares in European EV startup Arrival ( NASDAQ: ARVL ) rocketed over 50% higher in premarket trading on Monday on new of a merger agreement with Kensington Capital Acquisition Corp. V.

In a Thursday evening press release, the Luxembourgish company said that the two companies will combine to develop a Class 4 van for introduction into the US market. The combined companies will trade under the ticker ARVL.

“This transaction offers a potentially significant capital infusion and additional support in bringing our XL Van to market,” Arrival CEO Igor Torgov said. “We are looking forward to partnering with Kensington to meet our production goals as we aim to commercialize our XL Van by the end of 2024.”

The new company is touted to sport an enterprise value of $524M. Shares of Arrival ( ARVL ) spiked about 40% in premarket trading, losing some steam from a nearly 100% jump around 6:45AM ET.

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