What happened
Shares of Decarbonization Plus Acquisition (DCRB +0.00%), a special purpose acquisition company (SPAC), were trading sharply higher on Monday morning. Bloomberg reported last week that the SPAC has struck a deal to merge with Hyzon Motors, a fuel cell truck start-up.
As of 10:45 a.m. EST, Decarbonization Plus' shares were up about 12.9% from Friday's closing price.
A bus powered by Hyzon's hydrogen fuel cells. Image source: Hyzon.
So what
We should be clear about something up front: The deal isn't official yet. Nothing has been announced by either company. But that said, Bloomberg did report late on Thursday that Hyzon Motors has agreed to go public via merger with Decarbonization Plus.
Why hasn't it been announced? According to the Bloomberg report, Decarbonization Plus has been holding discussions with potential investors about raising additional money to support the deal, which would value the post-merger Hyzon at over $2 billion.
Hyzon makes electric semis, buses, and medium-duty trucks powered by hydrogen fuel cells, which chemically convert hydrogen gas to electricity with no toxic emissions. The start-up, based in Rochester, New York, is a spinoff of Singapore-based Horizon Fuel Cell Technologies, which has been working on fuel cells for commercial applications for over 15 years.
Hyzon's investors include French oil giant Total SE.
Now what
For auto investors eager to snap up shares of what might be the next big electric-vehicle play, there's nothing to do now but to wait until the deal is officially announced. According to the Bloomberg report, that could happen later this week.
