The boards of directors at Taiwanese firms Gintech, Solartech and Neo Solar Power (NSP) have today approved the terms of a proposed merger between the three companies.
The approval means that United Renewable Energy Co. (UREC) will become a legally recognized company on March 28, once the three companies each hold a final extraordinary general meeting.
UREC is being created by pooling the strengths and portfolios of the three solar cell producers, becoming at a stroke the largest PV cell producer in Taiwan, and one of the largest in the world.
Confirmation of the merger was first reported by pv magazine in October. Jenny Chase, Bloomberg New Energy Finance (BNEF) solar analyst, told pv magazine at the time that such a merger was not wholly surprising, given that Taiwanese solar firms have long collaborated closely.
The newly formed entity will distribute evenly the expertise garnished from Gintech, Solartech and NSP, ensuring an even-handed approach to silicon wafer, solar cell, solar module, and power grid activities globally.
According to an official press release published by NSP, UREC will enable the “vertical integration of solar and construction of a winning business model by leveraging each company’s strength”, which will also aid UREC’s bargaining power and boost market shares.
Taiwan’s National Development Fund will then float UREC’s shares via private placement. The medium-term aim of the newly created company is to expand its domestic solar system business, to help Taiwan meet its government-mandated solar installation target of 20 GW by 2025.