Westport Shares Climb on Plans for Joint Venture With Volvo
July 19 2023 - 9:53AM
Dow Jones News
By Robb M. Stewart
Westport Fuel Systems' shares jumped Wednesday after the
Canadian company moved to form a joint venture with Volvo that will
seek to accelerate the commercialization of its fuel-system
technology for long-haul and off-road use.
In morning trading, the shares were 15% higher at C$14.64 on the
Toronto Stock Exchange, widening the gain so far this year to 41%.
On Nasdaq, the stock was up 14% at $11.01.
Under a letter of intent signed by the companies, Westport will
contribute its current HPDI fuel system assets and activities to
the joint venture, and Volvo will buy a 45% interest in the venture
for about $28 million, plus up to an additional $45 million,
depending on the venture's performance.
The joint venture is expected to launch in the first half of
next year, subject to successful negotiations and execution of a
definitive investment agreement, joint venture agreement, supply
agreement and development agreement, the companies said.
Westport's HPDI has been on the road in Volvo trucks for more
than five years, and has been shown to reduce carbon dioxide
emissions in liquefied biogas applications and is a potential
avenue for hydrogen use, Volvo chief technology officer Lars
Stenqvist said.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
July 19, 2023 10:38 ET (14:38 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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