In a strongly worded statement, US firm ElectraMeccanica has terminated its proposed merger with Tevva Motors, leaving the UK-based truck builder back at square one as it seeks to secure its future.
ElectraMeccanica has pulled the plug on its proposed merger with Tevva, citing ”multiple incurable breaches of the agreement by Tevva, including failures by Tevva to disclose to ElectraMeccanica material information about Tevva” in a statement, released on 04 October 2023, announcing the termination, with immediate effect.
The proposed merger had been announced to much fanfare in August this year, with ElectraMeccanica releasing a $6 million credit facility to Tevva providing the truck builder with much needed additional working capital to accelerate delivery of commercial vehicles to fleet customers. Not only has the deal been shelved, but according to the statement from ElectraMeccanica, Tevva has just three months to pay back the money owed, ”…the principal amount lent under the secured facility, together with any accrued interest and other sums, are due and repayable to ElectraMeccanica by no later than January 2, 2024.”
A Tevva spokesman told our sister title Motor Transport: “We are deeply disappointed by ElectraMeccanica’s abrupt decision to terminate the proposed merger agreement. We are considering our position and until we have done so will not be making further comment.”