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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.