Westport Shares Climb on Plans for Joint Venture With Volvo

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 [e-mail]

(END) Dow Jones Newswires

July 19, 2023 10:38 ET (14:38 GMT)

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