Shares of Lotus Technology (NASDAQ: LOT) surged 18.18% in after-hours trading on Tuesday following the company's announcement of a strategic acquisition that will consolidate its brand operations.

In a press release, Lotus Technology revealed that Etika Automotive Sdn Bhd has exercised its put option, requiring Lotus Tech to purchase the remaining 49% equity interest in Lotus Advance Technologies Sdn Bhd (Lotus UK). This move comes after Geely International Limited had previously exercised a similar option in April. Upon completion of these transactions, Lotus Technology is set to acquire 100% of Lotus UK through non-cash transactions based on pre-agreed prices.

The acquisition is significant as it will allow Lotus Technology to gain full control over Lotus UK, which manages the manufacturing operations of Lotus' sports cars and hypercars, as well as Lotus Engineering, a division that provides consultancy services to many OEMs and Tier 1 suppliers globally. This strategic move is expected to enable Lotus Technology to integrate all businesses and operations under the Lotus brand, potentially streamlining operations and enhancing synergies. The deal is anticipated to be completed by 2025, subject to regulatory approvals.