CATL is in talks to purchase photovoltaic module provider DAS Photo voltaic, which ranked No. 8 globally in PV module shipments within the first half of this 12 months, in response to native media.
CATL, the world’s largest energy battery maker, is trying to purchase a photovoltaic (PV) module and photovoltaic cell firm, and is presently in talks to accumulate DAS Photo voltaic, native media outlet LatePost reported at this time.
DAS Photo voltaic was based in 2018 and ranked No. 8 globally in PV module shipments within the first half of this 12 months, the report famous.
Earlier than approaching DAS Photo voltaic, CATL had tried to accumulate a 51 p.c stake in one other PV module maker, Jiangsu Runergy New Vitality Know-how, for RMB 4 billion ($562 million), the report mentioned, citing a number of folks aware of the matter.
Nonetheless, PV large Tongwei beat the competitors by bidding RMB 5 billion for a 51 p.c stake in Runergy, the world’s fifth-largest maker of PV cells, setting a document for mergers and acquisitions in China’s PV historical past, the report famous.
Tongwei introduced the deal in an trade announcement on August 14, saying Runergy would change into its controlling subsidiary upon completion of the deal.
Development in China’s energy battery trade has slowed in recent times, and CATL, which has loads of capital, has funding wants, the LatePost report famous.
CATL started approaching plenty of PV module firms within the second quarter, however a number of buyers imagine that the highest six firms within the PV module market — JinkoSolar, Longi, Trina Photo voltaic, JA Photo voltaic, Atlas, and Canadian Photo voltaic, wouldn’t select to promote themselves, in response to the report.
All six firms are publicly traded, have extra entry to financing, and have comparatively ample money reserves to outlive into the following upswing in demand, LatePost mentioned.
Of the highest 10 PV module firms in international shipments, the one ones that are not but listed are Runergy and DAS Photo voltaic, which have been among the many few appropriate targets for CATL, the report mentioned.
After lacking out on Runergy, CATL is operating out of choices, the report mentioned.
DAS Photo voltaic additionally understood this and supplied greater than 1x PB, however CATL thought the worth was too excessive and the 2 sides are nonetheless negotiating, the report mentioned, citing an individual aware of the matter.
Talks for CATL to purchase DAS Photo voltaic might be concluded inside a month, and aside from CATL, there are different PV trade firms approaching DAS Photo voltaic, the report mentioned.
The flexibility to fabricate its personal PV modules would improve CATL’s vertical integration within the new power sector.
There’s additionally a window of alternative for M&A of PV belongings now, after the sector’s valuations plummeted in early 2023 as a consequence of overcapacity.
This 12 months, the PV trade is as soon as once more coming into an M&A cycle, so CATL is starting to look to consolidate the PV trade in an try and change into a extra fully-fledged power large, LatePost mentioned.
($1 = RMB 7.1163)
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