Shareholders for SolarCity and Tesla have voted to approve the long-awaited merger of the two companies in a move that could drive down equipment costs and increase homebuyer awareness toward solar.
This potential plan has been up in the air since an August announcement from Tesla earlier this year. Elon Musk currently owns 20 percent of SolarCity and serves as a chairman for the company—it’s unclear whether Musk will take on a larger role at SolarCity once the deal is completely finalized.
According to the press release, Tesla’s shareholders overwhelmingly voted to approve the acquisition and subsequent merger of SolarCity. Excluding the votes of Musk and other affiliated shareholders, more than 85 percent of votes were cast in favor of the deal.
Tesla will pay $2.6 billion to acquire SolarCity, a move that has divided some financial analysis who claim that this merger is a sort of bailout for SolarCity, which has shown signs of slowing in recent months.
Earlier this month, Tesla aimed to suppress the rumors that this deal was to bailout SolarCity through a statement to investors and shareholders. Instead, executives at both companies have argued that this merger is necessary to fulfilling Musk’s goal of creating a fully-integrated sustainable company and that the deal was the next logical step to increasing awareness.
Supporters of the acquisition have pointed to this being a win-win for both companies and the markets they serve due to the overlap of green-minded consumers who are interested in electric vehicles and consumers interested in generating their own power to offset utility costs.
Following the deal, Tesla and SolarCity will be the world’s only vertically-integrated energy company that offers end-to-end green energy products to consumers.
Now that the shareholders have voted to approve the acquisition, the transaction will be completed over the next week.
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