Shell USA Inc, a subsidiary of Shell Plc, announced on Wednesday that it will buy Volta Inc, an electric vehicle (EV) charging network provider, for about $169 million in cash. Shell USA will pay 86 cents per share in cash for all outstanding shares of Volta’s Class A common stock in the deal, which is anticipated to close in the first half of the year.
Shell’s action is part of the company’s aim to invest in EV charging infrastructure as demand for electric vehicles grows. Other firms, including France’s EDF and Norway’s Statkraft, have invested in EV charging infrastructure in order to benefit from this trend.
Shell USA would give loans to Volta as part of the agreement to help the firm complete the purchase. Following the announcement of the purchase, Volta’s stock jumped 18% to 86 cents in premarket activity.
Volta’s financial advisers were Goldman Sachs and Barclays Capital, while its legal adviser was Shearman & Sterling LLP. Shell USA’s acquisition demonstrates the growing relevance of EV charging infrastructure and the growing demand for electric automobiles. It will be interesting to observe how Shell intends to use Volta’s charging network and how this acquisition will affect the future EV industry.