Polestar in talks to go public by merger with SPAC

Polestar, the premium electric vehicle maker owned by China's Geely and Volvo Cars, is in talks to go public through a merger with blank-cheque firm Gores Guggenheim Inc, Bloomberg News reported on Thursday.

The deal may value the combined company at about $25bn (roughly R357,773,500,000), the report said.

This comes as the global car market is increasingly shifting to more environmentally friendly vehicles.

In April, Sweden's Polestar raised $550m (roughly R7,871,017,000) in external funding and last month it announced plans to build the Polestar 3 electric sports utility vehicle at Volvo's US plant in South Carolina, starting in the second half of 2022.

No deal has been reached between Polestar and Gores Guggenheim and it is possible terms could change or that talks could fall apart, the Bloomberg report said.

Polestar, Gores Guggenheim, Volvo and Geely did not immediately respond to Reuters' requests for comment.