Tesla's Powerwall Home Battery. Source: SolarCity. License: All rights reserved.
The US Federal Trade Commission and Department of Justice (DOJ) have given the green light to electric vehicles maker Tesla Motors Inc (NASDAQ:TSLA) to take over solar power company SolarCity (NASDAQ:SCTY).
The proposed combination is on the list of transactions that were granted early termination of the Hart-Scott-Rodino (HSR) waiting period on Wednesday.
Under the terms of the deal, SolarCity stockholders will receive 0.110 Tesla common shares per SolarCity share, valuing the target company’s common stock at USD 25.37/share based on the five-day volume weighted average price of Tesla shares as of July 29. The equity value of the transaction is estimated at USD 2.6 billion (EUR 2.3bn).
Previously, Tesla said that the acquisition will create a simple one-stop solar plus storage experience: one installation, one service contract, one phone app. The Tesla plus SolarCity combinations will result in lower hardware and installation costs for customers, better manufacturing efficiency and reduced customer acquisition costs, it added.