On 10 October, leading Chinese manufacturer Tongwei released an update on its planned acquisition of 100% of polysilicon manufacturer Qinghai Lihao Clean Energy, noting that the deal remains ongoing with key terms still under negotiation.
Under the plan, Tongwei would acquire the full equity stake in Qinghai Lihao held by 57 shareholders, including founder and former Tongwei director Duan Yong, Hainan Zhuoyue and Hainan Haoyue. Tongwei plans to complete the deal through a combination of newly-issued shares and cash, along with a concurrent fundraising round.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
However, the company said last week that this proposal may be revised and that completion of the deal remains uncertain. Tongwei also intends to raise supporting capital by issuing new shares to no more than 35 qualified investors.
Tongwei first announced the acquisition in February, and on 10 March held a board meeting to approve the preliminary acquisition plan and related proposals, and subsequently disclosed the transaction blueprint. On 24 September, the company announced that it had received a ‘Non‑Prohibition Decision on Anti‑Monopoly Review of Concentration of Undertakings’from the State Administration for Market Regulation (SAMR), an important step in regulatory approval for the deal.
The regulator noted that although the combined market share of the two companies in solar‑grade polysilicon is relatively high, ample capacity and numerous competitors mean the deal would not eliminate or restrict competition.
According to the announcement, while antitrust clearance satisfies the concentration‑of‑undertakings review requirement, it does not automatically complete the transaction. The parties must continue negotiating the deal plan, and Tongwei must convene a new board meeting and obtain shareholders’ approval before closing.
Market challenges leave parties at odds
Despite securing regulatory approval, the deal has not been completed. Changes in the PV market, industrial policy and supply‑demand dynamics have left the parties at odds over key deal terms.
As a result, Tongwei said it would be unable to convene a shareholders’ meeting within six months of its initial board resolution. Its September disclosure stated that negotiations would continue and that formal next steps would follow only after consensus on the plan is reached.
Industry observers said the October update indicates the deal is still progressing, though it has yet to reach shareholder approval or closing. Key unresolved issues include the equity purchase price, payment structure and the size of the supporting fundraising.
