NIO in talks to sell power unit to CATL - report
Seeking Alpha News (Mon, 07-Apr 9:26 AM)
- China’s NIO Inc (NYSE:NIO) is in talks to sell its power unit to Contemporary Amperex Technology Co Limited (“CATL”), the world’s largest manufacturer of lithium-ion batteries used in the electric vehicle industry, according to sources cited by Reuters.
- NIO Power is one of the company’s core assets and provides charging and battery swapping services.
- While the financial terms were not disclosed, NIO’s (NYSE:NIO) power unit was valued at more than 10B yuan ($1.37B). Last month, CATL invested 2.5B yuan ($342M) in the unit. The acquisition would further CATL’s plans to replace a third of China’s gas stations and increase its battery-swapping network.
- Although investments in the unit have weighed on NIO’s (NYSE:NIO) overall profitability, non-vehicle revenue for the quarter ended December 31 increased 34% to $305M.
- NIO (NIO) shares are down more than 6% into Monday’s opening bell.
