LDK Solar Co., Ltd. (“LDK Solar”) (NYSE: LDK), a leading manufacturer of multicrystalline solar wafers and PV products Just Bought 70% in on Solar Power, Inc. (“SPI”) (OTCBB:SOPW). They announced this last week and I really wanted to put my head around this merger before I reported.
For starters, LDK Solar (the Chinese manufacturer of solar wafers that go into our PV panels!!!!!) acquired 70% interest in SPI for approximately $33 million.
This is a big deal for solar COSTS though. Let me explain. SOPI is a pretty interesting company themselves. They engineer, design, build and finance successful solar energy projects nationwide.
For starters: Staples Center and Nokia Center..OK California!!!
Uh huh. OK, so now they are getting bought up mostly by one of if not the largest solar company making the panels and cells that companies put frames around and call their own!! Huge!!
So look now the biggest solar contractor and the largest solar company get together. Like Will Ferrel said: Shake and Bake!
You can drop that price of solar in a New York minute now. No complications. You can now even bid out what company gets the wafers to put into the panels that collect our solar energy.
SPI’s growing development portfolio and pipeline, in turn, should provide LDK Solar with enhanced downstream benefit to its vertical integration model through module supply for large-scale projects.
“We are very pleased to have this transaction concluded,” said Xiaofeng Peng, Chairman and CEO for LDK Solar. “SPI provides a strong strategic complement to our downstream vertical integration opportunities and provides LDK Solar and SPI the opportunity to jointly explore opening manufacturing operations in the U.S. to further enhance SPI’s competitive advantage in North America.”
“We are happy to be part of the growing LDK global team,” said Steve Kircher CEO for SPI. “The strength of our newly combined vertical platform should provide us significant competitive advantages going forward,” Mr. Kircher concluded.
So how much is the cost dropping..I don’t know but as soon as I find out, I’ll let you know!