Tesla and SolarCity are reportedly close enough to a merger agreement to bring a vote

It has been over a month since Tesla announced the proposed acquisition of SolarCity and the two companies have been doing their due diligence on the agreement ever since. They are now reportedly close to an agreement and could announce the “terms of a deal in the coming days”.

Reuters cited sources familiar with the process:

The two companies, which count billionaire Elon Musk as a major shareholder, are in the final stages of carrying out due diligence on each other, and could agree on the terms of a deal in the coming days, though it is still possible that their negotiations end unsuccessfully, the people said on Saturday.

It could not be learned whether SolarCity would be successful in including a go-shop provision in a merger agreement with Tesla that would allow it to continue to solicit bids from other potential buyers for a short period of time.

The sources asked not to be identified because the negotiations are confidential. Representatives for SolarCity and Tesla did not immediately respond to requests for comment.

Under the original proposal, Tesla would acquire SolarCity for $2.8 billion in an all-stock transaction.

The merger would create a “one-stop shop” for customers to buy a solar installation integrated with a home battery pack. Tesla CEO Elon Musk talked about synergy in product development for inverters and cutting down on distribution costs.

Several board members from both companies have to recuse themselves from voting due to their connections with both companies, including Musk himself who is the biggest shareholder of both Tesla and SolarCity.

Last week, he said that he is confident that an agreement would be adopted by around two-thirds of the shareholders, especially after the major shareholders expressed interest in the deal.