Luxury electric vehicle (EV) maker Lotus Tech Inc. and L Catterton Asia Acquisition Corp. will form a combined entity in a transaction valued at $5.4 billion, the companies recently announced. The merger will speed up Lotus Tech’s efforts to deliver sustainable, all-electric vehicles worldwide.
Current Lotus Tech equity holders, including Zhejiang Geely Holding Group, are expected to retain their interests in Lotus Tech and own about 89.7% of the issued and outstanding equity of the combined entity. Geely Holding, which makes 150,000 vehicles annually and has a dedicated EV manufacturing and integrated car racing facility in Wuhan, China, has a proven record of growing auto brands. In partnering with Geely Holding, Lotus Tech can focus on research, development, and distribution.
Lotus Tech operates under the iconic British brand Lotus, which was established in 1948 and is known for its racing heritage. Lotus Tech, the brand’s technology, sales, and marketing division, has developed EVs ahead of its traditional combustion-engine peers. During the first quarter of 2023, it intends to begin delivery in China of its fully-electric hyper SUV, Eletre, followed by roll-outs in the U.K. and EU later in the year.
With the deal, Lotus Tech plans to expand its portfolio of all-electric, sustainable luxury EVs featuring groundbreaking technologies, beginning with launches of an E-segment sedan and a D-segment SUV.
"This is an exciting time for Lotus Tech as we work towards delivering our first fully electric hyper SUV, applying our innovation and engineering expertise to meet the rising global demand for luxury EVs,” Qingfeng Feng, Chief Executive Officer of Lotus Tech, said in a statement. “In L Catterton, we have found a partner with an impressive track record of not only building iconic premium brands and creating value for companies by leveraging worldwide consumer expertise, but also bringing them to public markets and powering their long-term development.”
