(Reuters) – Power infrastructure developer VivoPower International said on Wednesday that the combined company, following its merger with Future Automotive Solutions and Technologies (FAST), would be headquartered in the United Kingdom.

VivoPower said it hopes to qualify for potential government incentives in the UK, which has a target to decarbonize its electricity sector by 2030.

“This is in an effort to qualify for significant and attractive potential UK Government incentives that have been announced,” the company said in a statement.

Earlier this month, VivoPower had signed a non-binding agreement to merge with Canada-based hydrogen technology firm FAST, which would create a $1.13 billion combined company.

After the deal is completed, VivoPower will acquire FAST and issue restricted shares as consideration. FAST shareholders will own 51% of the combined company.

Shares of VivoPower were up 3.7% in trading after the bell.

(Reporting by Vallari Srivastava in Bengaluru; Editing by Mohammed Safi Shamsi)