ElectraMeccanica pulls Tevva merger due to ‘incurable breaches’

Tevva ElectraMeccanica merger Image credit: Tevva

Canadian automaker ElectraMeccanica has pulled the plug on its merger with UK-based electric and hydrogen truck firm Tevva.

Tevva in a statement published on Monday said ElectraMeccanica cited the reason for cancelling the deal as “incurable breaches”.

Last month, ElectraMeccanica said it torpedoed the deal following “failures by Tevva” to share “material information”.

In a statement, Tilbury-based Tevva said: “The Tevva team was deeply disappointed by this abrupt decision and had no opportunity to respond to ElectraMeccanica’s claims before they went public.”

It comes after senior staff from ElectraMeccanica have been based at Tevva’s Tilbury site “for many weeks”.

Tevva rejected ElectraMeccanica’s explanation for the halt to the merger and said it is now taking legal action.

Plans for the Tevva ElectraMeccanica merger were first announced in August.

Tevva has said it will “shortly go public” with the allegations by ElectraMeccanica’s advisors.

As a result of the deal being abandoned, the truck startup has appointed David Roberts as CEO and Ken Scott as managing director.

It has returned to speaking with investors and companies seeking a merger with Tevva for medium and long-term funding support.

Production of its 7.5-tonne electric truck started in January when it was granted regulatory approval.

Last year the firm picked up £41m towards the production of its electric and hydrogen electric trucks.

Competitors to Tevva include Glasgow-based autonomous hydrogen truck maker HVS, which is developing one with supermarket Asda.