LDK bids for Sunways while suspending wafer supplies
China's LDK Solar is awaiting approval from the German regulators for permission to fully buy solar company, Sunways AG. It has also said that an existing supply contract would be suspended until regulators approved the deal.
By the end of this month LDK will acquire 33 percent of a modified share structure and will release further details of the full bid for Sunways and await approval by federal regulator, Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin.
The move is thought to be the first in a number of consolidations in the solar sector tipped for this year. European companies are vulnerable due falling share prices and a weak Euro and susceptible to take-over by Chinese solar firms seeking both market-share and technology.
Full details of all the LDK Solar and Sunways deal are as yet unavailable but are further complicated due to cross-ownership on manufacturing and distribution deals.
LDK has made no bones about the fact it had suspended existing long-term wafer supply contract between the two companies and heavily hinted it would be reinstated when German federal authorities approved the deal.
"We are happy that we have found in LDK a strategic anchor investor who shares our vision of the photovoltaic future and with whom we were able to develop over many years of intensive cooperation a relationship of trust with the highest appreciation and respect," said Michael Wilhelm, CEO of Sunways in a statement.