Upcoming/New CFIUS Filing: Paccar Inc.; Cummins, Inc.; Daimler Trucks Group Company; EVE Energy Co., Ltd. – Joint Venture
September 11, 2023 at 08:10 am EDT
Status: Upcoming/New Filing
Acquirer: Paccar Inc. (U.S.); Cummins Inc. (U.S.); Daimler Trucks Group Company (Germany); EVE Energy Co., Ltd. (China)
Acquired: New joint venture (U.S.)
Value: $2-3 billion
Industry Tags: Battery and Electronic Component Manufacturing; Electric Vehicles
On September 6, 2023, PACCAR Inc. (NASDAQ: PCAR) "entered into an agreement to form a joint venture company with Accelera by Cummins (a business unit of Cummins Inc.), Daimler Trucks & Buses US Holding LLC (a Daimler Truck Group Company), and EVE Energy US Holding LLC (a subsidiary of EVE Energy Co., Ltd.). The joint venture company would establish and operate a battery cell manufacturing facility in the United States . . ." (Paccar Inc. Form 8-K, Sept. 6, 2023, SEC Filing.) "Total investment is expected to be in the range of $2-3 billion for the 21-gigawatt hour (GWh) factory." (Press Release, Paccar Inc. Form 8-K, Ex-99.1, Sept. 6, 2023, SEC Filing.) "Accelera by Cummins, Daimler Truck and PACCAR will each own 30% of, and jointly control, the joint venture, which will initially focus on the lithium-iron-phosphate (LFP) battery technology family for commercial battery-electric trucks." (Id.) "EVE Energy [SZSE:310004] will serve as the technology partner in the joint venture with 10% ownership and will contribute its industry-leading battery cell design and manufacturing know-how. EVE Energy is a global leader in the manufacture of LFP battery cells for the vehicle industry and is publicly traded on the Shenzhen stock exchange." (Id.) "The transaction is subject to customary closing conditions, and receipt of applicable merger control and regulatory approvals including the submission of a voluntary notice to the Committee on Foreign Investment in the United States (CFIUS)." (Id.)
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Squire Patton Boggs LLP
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Paccar, Inc. specializes in the design, manufacturing and marketing of merchandise transportation vehicles. Net sales break down as follows:
- sale of trucks (74.6%): 185,900 vehicles sold in 2022 (DAF, Kenworth and Peterbilt brands), and distributed by country in the United States and Canada (95,600 units), Europe (62,400) and other (27,900; primarily Mexico and Australia) ;
- sale of accessories, spare parts and industrial winches (20%): Braden, Gearmatic and Carco brands);
- sales financing services (5.2%): standard financing and lease financing;
- other (0.2%).
Net sales are distributed geographically as follows: the United States (53.3%), Europe (26%) and other (20.7%).