Lucid Motors, the electric vehicle startup, is close to a deal to go public through a merger with a blank-check company started by investment banker Michael Klein, Bloomberg reported, citing people familiar with the matter.
A deal for Lucid could be announced on Tuesday, two of the people said. The talks remain ongoing, however, and could still fall apart.
The combined entity will be valued at as much as $15 billion, the people said.
The special purpose acquisition company has been in talks to raise between $1 billion and $1.5 billion in funding from institutional investors to support the transaction, the people told Bloomberg.
Klein will use Churchill Capital Corp IV (CCIV), his largest SPAC that has raised more than $2 billion, for the transaction, the people said. Lucid is backed by Saudi Arabia’s sovereign wealth fund.
The merger between Lucid and Churchill Capital would be the biggest in a string of deals by EV makers such as Nikola (NKLA) - Get Report and Fisker (FSR) - Get Report that have gone public by combining with SPACs, noted Reuters, which reported on the possible deal last week. They have been raising cash to compete with Tesla (TSLA) - Get Report, the top electric vehicle company.
SPACs have dominated initial public offerings this year, accounting for 63% of the almost $77 billion raised on U.S. exchanges, according to data compiled by Bloomberg.
There are nearly 400 SPACs currently active and more than 100 preparing for IPOs, according to SPAC Research.