Tesla Motors offered $2.8 billion for merging with SolarCity

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Tesla Motors and SolarCity made progress in closure of a merger transaction, people familiar with the situation shared with Reuters online media outlet on the matter.

According to the source, the company is "in the final stages of due diligence." They can reach an agreement in the coming days, although there is a possibility that the negotiations end in fiasco.

Tesla offered to buy SolarCity, which is engaged in solar power systems, at the end of June this year. They made a bid worth $2.8 billion which makes the price per share to be $ 26.5 to 28.5.

Tesla founder Elon Musk is the chairman of the board of directors and SolarCity major shareholder (22%). He said that the shareholders of both companies will vote on the deal, and he would abstain from voting.

According to Musk, the deal will allow the tighter integration of the products of both companies, specifically selling batteries for solar modules in shops of automobile companies.

SolarCity was founded in 2006. The company produces "clean energy, available to homeowners, businesses, schools, nonprofit organizations and government agencies at a lower price than they paid for energy produced by burning fossil fuels such as coal, oil and natural gas", mentioned on the company's website.

Source: autonews.ru, reuters.com


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