Vietnam has now effectively overtaken Thailand as the largest solar market in Southeast Asia in terms of installed solar operational capacity, with more than 6,314 MW installed up to September 2020. Many hundreds of MWs of solar projects are also still under construction or development. However, its solar (and other renewable energy) M&A activity has developed very slowly to date. There are many reasons to expect that this is about to change, but before we examine them, let us review the main factors behind this sluggish tempo.
Last December, the company’s CEO made a proposed transaction offer to acquire Canadia Solar. Mulling the offer, a special committee has now advised the company’s board to cease its review of the proposal, highlighting that it could not find sufficient certainty in the CEO’s ability to secure the funding for the transaction. Following the news today the CEO has withdrawn his offer.
While total corporate funding was down in H1 2018, compared to a year earlier, due to lower investment in the Smart Gird and Efficiency categories, battery storage companies recorded an increase of 12%.