VinFast is about to merge with an American company

According to Reuters, in the filing with the securities regulator in the US, VinFast announced the completion of the merger with Black Spade Acquisition Co in July, with the goal of completing it before July 20.

The combined company has an enterprise value of approximately $27 billion. VinFast’s valuation is based on Black Spade’s decision. The American company believes that VinFast is comparable to electric vehicle manufacturer Lucid due to the similarity in revenue size and the overall global target market. Currently, they focus on sales in the US in the short term.

Black Spade was founded by Black Spade Capital. This fund is operating a portfolio of cross-border investments.

According to Reuters , VinFast faces competition from a strong rival led by Tesla. Elon Musk’s electric car company has been launching a series of new electric car models in the context of a weakening global economy.

At the general meeting of shareholders last month, Pham Nhat Vuong – Chairman of Vingroup’s Board of Directors – said that VinFast can break even as soon as the end of 2024.

The richest person in Vietnam is expected to sell 50,000 vehicles this year, a sevenfold increase from 2022 as the company increases exports to North America and starts entering the European market.

VinFast has been operating since 2019, has a factory in Vietnam and is planning to build a second factory in North Carolina, USA. The company is bringing 3,000 electric vehicles to North America and plans to deliver the further range of the VF 8 SUV to customers in June.