Inverter manufacturer SMA Solar has concluded the acquisition of a majority stake of 72.5% in Chinese inverter company Jiangsu Zeversolar New Energy.
The Chinese government approved the transactions following negotiations which started at the end of last year. This transaction secures SMA’s access to the growing Chinese market.
The Chinese government has has recently significantly raised its photovoltaic expansion targets again. The new target is to install a further 10GW each year over the next three years making China the largest photovoltaic market worldwide.
“Therefore, the majority stake in Zeversolar, which makes it possible for SMA to gain access to this growth market, is of great strategic importance,” explained CEO Pierre-Pascal Urbon.
“This transaction will provide SMA with access to the most important photovoltaic market of the future. Moreover, we will profit from the synergies in purchasing, production and development. We are expecting a positive contribution to earnings over the mid-term,” he added.
Zeversolar's company value based on SMA's stake of 72.5% is RMB319 million (approx. US$51 million) from which net liabilities were deducted in order to determine the purchase price. The purchase was financed with cash on hand.
The economic start of the transaction is 1 January 2013 retrospectively.