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Nikola Moves Closer to Acquisition of Romeo Power in Cypress

Just over half of Romeo shares tendered

Electric truck maker Nikola Corp. (Nasdaq: NKLA) of Phoenix said its planned acquisition of Cypress-based battery maker Romeo Power (NYSE: RMO) will proceed, after Romeo Power shareholders tendered just over half of the companyโ€™s outstanding shares.

In August, Nikola said it had agreed to acquire Romeo Power forย $144 million in stock. The deal was contingent on a tender offer to Romeo shareholders: Investors had to โ€œtender,โ€ or exchange, at least half of Romeoโ€™s shares outstanding by midnight Wednesday for the deal to proceed.

Nikola said in statement that 93.16 million Romeo shares, representing about 50.1% of the companyโ€™s total shares outstanding, had been tendered by the deadline โ€“ just enough to complete the deal.

Once the transaction is completed, Romeo will become a wholly owned subsidiary of Nikola and Romeo common stock will no longer be listed or traded on the New York Stock Exchange.

Shares in Nikola were down 1.2% to $2.96 apiece for a market cap of $1.3 billion, while Romeo Power rose 5.3% to 36 cents each for a market cap of $66 million.

For more on Nikolaโ€™s purchase of Romeo Power, see the Oct. 24 printย editionย of the Business Journal.

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Kevin Costelloe
Kevin Costelloe
Tech reporter at Orange County Business Journal
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