The $2.2 billion merger agreement between Vivint Solar and SunEdison Inc. is off.
Reuters reports Vivint claims a “willful breach” of the agreement by SunEdison when the solar energy company failed to close the deal.
The deal would have had SunEdison take over Vivint, a rooftop solar installer.
Reuters reports investors were critical of the merger from the beginning because of SunEdison’s finances and weakened share price. As of Monday, SunEdison’s stock had lost 94 percent of its value since the merger was announced in July 2015.
Reuters cites court documents in which Vivint claims SunEdison failed to secure financing.
SunEdison could be liable for the more than $34 million breakup fee, according to the report.