(Bloomberg) -- Polestar, the electric-carmaker controlled by Volvo Car AB and its owner Zhejiang Geely Holding Group Co., has agreed to go public through a merger with blank-check company Gores Guggenheim Inc., according to people with knowledge of the matter.

The deal could be announced as soon as Monday, said the people, who asked not to be identified because the information was private. The combined company would be valued at about $20 billion including debt, one of the people said.

The terms or timing of a final agreement could still change, the people said.

A representatives for Gores Guggenheim declined to comment. A spokesperson for Polestar didn’t immediately respond to a request for comment.

Based in Gothenburg, Sweden, Polestar is a rival to Tesla Inc. and EV maker Lucid Motors. Bloomberg News reported in June that the company was in talks with Gores Guggenheim. The Wall Street Journal reported earlier Sunday that the two were nearing an agreement.

The company’s second vehicle and first all-electric car, the Polestar 2, started production in March at Geely’s plant in Luqiao, China. Last September, the automaker said it would put another car, the Polestar Precept, into production. In June, the company said the Polestar 3 -- an SUV -- will be built in Ridgeville, South Carolina, in a plant opened by Volvo Cars in 2018. 

Gores Guggenheim, led by Chairman Alec Gores and Chief Executive Officer Mark Stone, is sponsored by affiliates of Gores Group and Guggenheim Capital. It raised $800 million in a March initial public offering.

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