Apple are seriously interested in purchasing Electric car maker Tesla with a big deal which is worth $250 billion. The American multinational technology company, being one of the seven companies who are interested in purchasing the brand. They are rumoured to be the front-runners in this mega deal.
The company, which has bought many high-profile American multinational companies in the past like NeXT.Inc and PrimeSense, could add another feather to its cap if the deal turns out to be successful. In a note to its clients, Apple will have about $220 billion for acquiring other companies or buybacks, with 90% of the total cash resides outside the US, as stated by an analyst for Citigroup.
The companies interested will be evaluated on major criteria’s like Global scale, Transaction size and Impact on share price. A new tax blueprint was revealed in which Multinational companies can bring their overseas profits at a tax rate of only 10%, demanding 35% tax under the guidance of the US president Donald Trump in early April. Experts say that the company could buy Tesla with a market cap of $51 billion, while Tesla CEO Elon Musk denied it and said that in the next 10 years, he could see Tesla exceeding Apple with a valuation of $750 billion predicted by him.
However, if Apple do buy Tesla, it will give the company a major boost with the wider flexibility of Tesla all over the world compared to the other brands it owns currently. While these rumours could be put to bed, there are chances that the company could raise its quarterly dividend due to pressure from its shareholders.
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