Spartan Energy (NYSE:SPAQ) stock is on the rise Friday following news that the company is planning to acquire electric vehicle (EV) company Fisker.
Recent reports claim that Spartan Energy is bidding to acquire the EV company. However, finer details of a possible deal, such as the asking price for Fisker or when the deal would close, are still completely unknown.
It’s worth pointing out that Spartan Energy isn’t a typical public company. Instead, its a special purpose acquisition company. It basically exists for the sole purpose of acquiring a private company and taking it public through a merger. This allows the company to avoid the typical initial public offering (IPO) process.
According to the recent EV news, Spartan Energy isn’t the only company interested in acquiring Fisker. Unfortunately, it’s still unknown which other companies may be trying to purchase the carmaker, reports Bloomberg.
If Spartan Energy goes through with the acquisition, it would set Fisker up as a rival for other publically-traded EV companies. That includes the current market darling Tesla (NASDAQ:TSLA), as well as newer rivals, such as Nikola (NASDAQ:NKLA).
Nikola actually saw its own rally earlier this week following some positive words from a JP Morgan analyst. That saw it getting a new rating and price target with the analyst expecting positive movement in the coming weeks.
SPAQ stock was up 8.6% as of Friday afternoon. It also saw a 38.5% jump on Thursday when the acquisition reports first started spreading.
As of this writing, William White did not hold a position in any of the aforementioned securities.
