M&A activity in solar sector reaches USD 563m in Q3 2011

Oct 12, 2011 - Merger and acquisition activity (M&A) in the solar power sector came to USD 563 million (EUR 408m) for 20 deals in the third quarter of 2011, Mercom Capital Group LLC announced.

"The number of M&A transactions in 2011 has already surpassed 2010 numbers, signaling that the move towards industry consolidation may have begun," said Raj Prabhu, Mercom managing partner.

The USD-180-million takeover of solar wafer maker Solar Silicon Valley Electronic Science by Chinese photovoltaic (PV) equipment major JA Solar (NASDAQ:JASO) was among the biggest transactions. Another major deal was US silicon wafer maker MEMC Electronic Materials' (NYSE:WFR) acquisition of the US arm of Spanish Fotowatio Renewable Ventures for USD 131 million, Mercom said.

Third-quarter venture capital funding grew slightly to USD 372 million from USD 354 million in the second quarter of the year. There were 29 disclosed transactions. The number-one deal was the USD-85-million capital raising launched by US HelioVolt Corp, which makes thin-film copper indium gallium selenide (CIGS) solar modules.

According to Mercom, solar downstream companies attracted USD 130 million in funding, while thin-film companies raised USD 125 million.

Debt funding during the quarter stood at USD 452 million in five transactions, with the top ones involving China Sunergy (NASDAQ:CSUN), Daqo New Energy Corp (NYSE:DQ) and Hanwha SolarOne Co Ltd (NASDAQ:HSOL).

(USD 1 = EUR 0.725)

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