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Germany’s competition regulator, Bundeskartellamt, has approved Rivian Automotive’s joint venture with Volkswagen, along with Volkswagen’s acquisition of a minority stake in Rivian. This decision, announced on Friday, marks a significant milestone for both companies as they advance their collaboration in the rapidly evolving EV market.
The Bundeskartellamt’s approval is a crucial step for the partnership, as it clears the way for Rivian and Volkswagen to move forward with their strategic alliance. The regulator’s President, Andreas Mundt, emphasized the importance of evaluating cooperation projects involving major companies, particularly in cutting-edge sectors like automotive innovation.
Mundt stated, “When it comes to cooperation projects set up to develop new products and technologies in key cutting-edge sectors, particularly those involving large companies, we take a close look at competition in innovation. The project does not raise any concerns in this respect, nor does it raise any other serious competition concerns.”
The joint venture between Rivian, an American EV manufacturer known for its all-electric R1T pickup and R1S SUV, and Volkswagen, a leading German automaker, aims to leverage both companies’ expertise to drive advancements in electric vehicle technology.
Following the announcement, Rivian’s shares saw a positive movement, increasing by 1.3% in recent premarket trading. This uptick reflects investor confidence in the potential benefits of the partnership and the anticipated impact on Rivian’s growth prospects.
The approval by Bundeskartellamt highlights the regulatory body’s support for collaborations that enhance innovation in the automotive industry. As Rivian and Volkswagen proceed with their joint venture, industry observers will be closely watching how the partnership shapes the future of electric vehicles and contributes to the broader goals of sustainable transportation.