Shares of Nikola surged Tuesday after General Motors announced it’s taking an 11% stake in the electric truck maker and will produce its marquee hydrogen fuel cell electric pickup truck the Badger by the end of 2022. For its part, GM is getting a $2 billion stake in Nikola and the right to nominate one board member in exchange for in-kind services. Phoenix-based Nikola specializes in building zero-emission semi trucks using battery or hydrogen fuel cell technology, but it recently introduced its Badger pickup truck for consumers. This will also make GM the exclusive supplier of Nikola’s fuel cells globally, except Europe, for its class 7/8 trucks. In a statement, GM CEO Marry Barra emphasized the potential benefits for GM saying “this is a huge growth opportunity for us. GM has seen pressure from Wall Street to spin off its electric vehicle business for a while. Could this be the catalyst for the spin off???
Luxury-goods giant LVMH Moët Hennessy Louis Vuitton SE announced Wednesday it will backing out of its $16.2 billion takeover of Tiffany, claiming that both the U.S. jewelry company and the French government asked it to delay the acquisition beyond the closing date allowed by the merger agreement. According to LVMH, the French foreign ministry had sent it a letter asking the company to delay the acquisition to after Jan. 6, 2021 because of the threat of trade tariffs from the U.S. Separately Tiffany asked the company to delay the acquisition until Dec. 31 of this year. Tiffany announced, it filed a lawsuit in Delaware to enforce the agreement and claimed LVMH was using the letter from the French government as a pretext to back out of the deal. The merger agreement sets November 24th as the final date for completing the deal. LVMH and Tiffany had already agreed to push back the initial deadline from August 24th to November 24. According to Tiffany LVMH has not sought approval of the merger in several key jurisdictions, like the European Union, making finalization for the deal difficult before the November 24th deadline.
The plan to acquire the jeweler was the biggest ever attempted by Bernard Arnault, chief executive and controlling shareholder of LVMH. Completed shortly before the coronavirus pandemic threw the luxury-goods market into turmoil, the deal was part of Mr. Arnault’s ambition to expand the company’s jewelry business, which was one of the fastest-growing sectors in luxury.
Asia: Asian stocks declined Wednesday after Chinese inflation data for August showed the producer price index declined 2.0% in August from a year earlier.
Europe: European shares fell on Tuesday on fears that Britain was in danger of leaving the European Union without a trade agreement.
U.S: U.S. markets tumbled on Tuesday as investors remained jittery about the recent drop in big tech stocks. DJIA:-632.42 27,500.89 NASDAQ: -465.44 10,847.69 S&P: -95.12 3,331.84
Word of The Day:
An accounting method of allocation the cost of a tangible or physical asset over its life expectancy.
Dinner or Drink:
Legends of The Fall
3/4 oz. Jack Daniel’s® Tennessee whiskey
3/4 oz. amaretto almond liqueur
2 1/2 oz. pineapple juice
1 oz. cranberry juice
Fill an old-fashioned glass with ice. Add all ingredients. Stir and serve.