Despite publicly denying a takeover a few weeks ago, multiple industry insiders are reporting that a buy-out of one of the world’s largest solar companies, Suntech is “imminent”.
The rumoured buyers GCL Poly are well known to solar PV industry insiders but less known outside. The company has a net worth of over $3 billion and employes over 17,000 staff they are undeniably PV industry powerhouse, and have been looking at downstream opportunities, including projects in the Australian market, for some time.
As GCL have no recognisable brand or history the buy-out would seem logical, providing instant market credibility despite Suntech’s recent problems. However, GCL has not been immune to the perils of rapidly reducing average selling prices, and market analysts have noted that GCL themselves have debts in the order of $5B.
The move was reportedly driven by the Chinese Government who “asked around the industry for possible investors” and GCL did confirm they were one of the companies asked, according to Solar PV Investor.
The shakeup of China’s solar PV industry has undoubtedly well and truly started.
© 2012 Solar Choice Pty Ltd
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