SpaceX and Tesla merger would need Musk's approval despite recusal

Summarised from 2 outlets · Updated 23 Oct, 04:57 · Archive

SpaceX said a potential merger with Tesla would require approval from controlling shareholder Elon Musk, even though he has recused himself from talks.

SpaceX said Thursday that any potential merger with Tesla would require approval from controlling shareholder Elon Musk, despite his recusal from talks owing to conflicts of interest. In a regulatory filing, SpaceX stated that 'no determination by our special committee has been made regarding any potential combination, and any potential combination would be subject to further approval by our special committee, our board of directors and our controlling shareholder.'

Musk said on Tuesday the merger would be 'a good idea' and that both companies had formed special committees to discuss it. The proposed combination would be worth about $3.5 trillion, the Japan Times reports. Several Wall Street analysts have said they see a merger as a matter of when, not if, though they disagree on how much Tesla shareholders should receive.

Musk's public comments this week have rattled some insiders involved in the discussions, Reuters reported, with concerns that his remarks could invite shareholder scrutiny and delay the process. The New York Post reported that Musk's disclosure created a 'mess' for the process, as it could lead to questions about how well Tesla shareholders' interests would be represented. Bringing the companies together could simplify decision-making and give management flexibility to allocate capital, engineering talent and infrastructure towards more promising projects.

How it is being reported

• Musk wants to merge SpaceX and Tesla: Here’s what to knowThe combination of the two companies would be worth about $3.5 trillion and would be the largest corporate deal in history.The Japan Times · 23 Oct, 04:43
• SpaceX now says potential blockbuster Tesla merger would need Elon Musk’s approvalMusk has recused himself from talks between his two companies because of conflicts of interest.New York Post · 22 Oct, 23:22

In this story: Elon Musk · SpaceX · Tesla

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