Elon Musk took another step in combining his electric-car company with his solar-energy company, announcing on Monday that the two had reached a $2.6 billion agreement.
Independent members of both boards approved a deal in which the car company, Tesla Motors, will acquire SolarCity for stock, valued at about $2.6 billion based on last week’s average price, a Tesla blog post said. SolarCity shareholders would receive 0.11 Tesla shares for each SolarCity share they own.
The deal still needs to be approved by a majority of shareholders and some are wary of the potential conflict of interest in combining two companies that are largely controlled by Elon Musk. If all goes according to plan the deal should go through by the end of the year.