Solar space lifted by SolarCity, Trina Solar takeover agreements

This morning, SolarCity (SCTY) disclosed that it has entered into a merger agreement with Tesla Motors (TSLA), while Trina Solar (TSL) announced that the company accepted a merger agreement of its own to go private. Following the news, several names in the solar space saw their stocks rise in late morning trading.

SOLARCITY, TESLA TO COMBINE: Tesla and SolarCity disclosed that they have entered into a merger agreement. The deal is an all-stock transaction with an equity value of $2.6B, the companies said. Under the agreement, SolarCity stockholders will receive 0.110 Tesla common shares per SolarCity share, valuing SolarCity common stock at $25.37 per share based on the 5-day volume weighted average price of Tesla shares as of July 29. As part of the agreement, SolarCity has a 45-day period known as a "go-shop," in which the solar company is allowed to solicit alternative proposals, that runs through September 14, 2016.

TRINA SOLAR GOING PRIVATE: Separately, Trina Solar announced that it has entered into a definitive merger agreement with Fortune Solar Holdings and Red Viburnum Company pursuant to which the company will be acquired by an investor consortium in an all-cash transaction implying an equity value of the company of approximately $1.1B. Each ordinary share of the company issued and outstanding immediately prior to the effective time of the merger will be cancelled and cease to exist in exchange for the right to receive 23.2c in cash, and each American depositary share will be cancelled in exchange for the right to receive $11.60 in cash. Speculation on a possible move to private started late last year when the company announced in December that its board had received a preliminary non-binding proposal letter from Jifan Gao, Chairman and CEO of the company, and Shanghai Xingsheng Equity Investment & Management, a subsidiary of Industrial Bank incorporated in the People's Republic of China, to acquire all of the outstanding shares of the company not owned by the Buyer Group for $11.60 in cash per ADS.

OTHERS ON THE RISE: Today's M&A news lifted other stocks in the space. Among the biggest winners are JA Solar (JASO) and Yingli Green Energy (YGE), which gained about 7% and 5%, respectively, in late morning trading. Additionally, Canadian Solar (CSIQ) and First Solar (FSLR) advanced about 3% and 1%, respectively.

PRICE ACTION: American depositary shares of Trina Solar have jumped about 26% to $10.42, SolarCity's stock has dropped about 5% to $25.33 and Tesla is down fractionally to $234.45 per share in late morning trading.