View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Market Data
March 9, 2016

Vivint Solar scraps $2.2bn merger with SunEdison

Vivint Solar has called off the merger deal with SunEdison, with the $2.2bn acquisition plan failing to close.

Vivint Solar has called off the merger deal with SunEdison, with the $2.2bn acquisition plan failing to close.

SunEdison had agreed to acquire Vivint Solar last July in a cash-and-stock deal.

However, the acquisition deal had been severely criticised by hedge funds and other investors as SunEdison’s share price, as well as its finances had weakened since then, reported Reuters.

"SunEdison’s borrowing constraints made it impossible for the company to complete the acquisition of Vivint."

Raymond James analyst Pavel Molchanov was quoted by the news agency as saying: "SunEdison’s borrowing constraints made it impossible for the company to complete the acquisition of Vivint."

Vivint, which is controlled by Blackstone Group, also filed a lawsuit against SunEdison in Delaware Chancery Court over charges of breaching the contract.

In its defence, SunEdison stated in the court papers that it could not to secure financing for the deal. However, Vivint stated that securing financing was not a condition in the agreement to close the merger deal.

With a market value of around $650m, SunEdison had long-term debt of $9.77bn as of 30 September 2015.

The acquisition deal was due to expire on 18 March.

Vivint Solar is a provider of distributed solar energy systems to residential customers in the US.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Wednesday. The power industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Power Technology