SMA acquires majority stake in Chinese PV inverter company21. December 2012 | Industry & Suppliers, Markets & Trends | By: Becky Beetz
SMA Solar Technology AG has acquired a 72.5% stake in Chinese photovoltaic inverter company, Jiangsu Zeversolar New Energy Co., Ltd. The move, if approved, will help SMA access China's burgeoning solar market.
Like those at this year's Intersolar China and the analysts at IHS, SMA forecasts that China will grow to become the biggest global photovoltaic market in the coming years. As such, it views its most recent acquisition as a strategic move towards gaining all important access to the market – something that was said to have been previously difficult, due to "local particularities".
"We are taking advantage of this historic chance to successfully anchor SMA in a young growth market and to further establish our position as global market leader," stated SMA speaker of the managing board, Pierre-Pascal Urbon.
He added that the acquisition will allow SMA to "open up the procurement channels in China more quickly than planned and, thus, advance ongoing cost-reduction measures at a faster rate." It will also give the company access to inverter products specifically tailored to the Chinese solar market.
Zeversolar has its production site in Yangzhong, and SMA said the company is in a position to quickly ramp up capacity.
While the exact purchase price was not divulged, SMA said, "Zeversolar’s enterprise value based on SMA’s stake of 72,5 percent is CNY 319 million (approx. €40 million) from which net liabilities are deducted in order to determine the purchase price. The purchase is financed with cash on hand."
The acquisition is planned to be finalized on January 1, 2013. The deal is still subject to approval by Chinese government authorities and the responsible anti-trust offices, however.
Keep your finger firmly on the photovoltaic pulse: sign up for our daily newsletter
- 5657 views
- 4862 views
- 3825 views
- 2234 views
- 1883 views
Want to publish your press releases for free? Simply log in or register, enter the information you want to appear and we'll publish it for you!