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Foreign deal making, exports face increased scrutiny

Joe Mont | August 8, 2018

Once again showing a flare for the dramatic, this week Tesla founder Elon Musk dropped a bombshell regarding the electric car manufacturer. He revealed a tentative plan to leave the public marketplace and take the company private at a per-share price of price of $420.

It is estimated that the deal could be worth as much as $72 billion.

Where would the money come from? Following Musk’s announcement, Saudi Arabia's sovereign wealth fund acquired, through secondary markets, a stake in the company that could total as much as $3 billion.

Here is where things may get a bit tricky for Tesla, if, hypothetically, a foreign sovereign wealth fund went all in and fronted the billions of dollars needed to take Tesla private, that deal might very well attract unwanted scrutiny under newly expanded government trade rules. Such a review could ultimately prove to be a deal-killer.

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