The hottest Korean Hanhua Petrochemical M & A Q

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It has been two years since Hanhua Petrochemical acquired Q

the solar photovoltaic industry, and the tide of bankruptcy has gradually spread from large European and American manufacturers to the entire photovoltaic market. The culprits accused of disrupting the order of the solar industry are Chinese manufacturers Wuxi Suntech, Jiangxi Saiwei, etc., while the German solar manufacturer Q-Cells, which has applied for insolvency in April this year, Recently, it is also reported that South Korea Hanhua petrochemical, which has previously merged with China's large solar energy plant Linyang new energy, will complete the merger as soon as the end of September this year. For the manufacturing capacity of China's Linyang new energy, at this time, taking advantage of the cheap to win Q-Cells, which is still quite famous in Europe and has access resources, and then opening up the capacity of Linyang new energy to the sea is equivalent to one and two consideration

q-cells once became the world's leading solar cell factory in 2007. However, after the rapid expansion of the solar industry and the transformation of the industry into an oversupply, Q-Cells has reduced the high-cost production lines in Europe and gradually outsourced the battery business in recent two years, leaving only a small part of the components and systems business. However, it is still difficult to resist the pressure of the Chinese army. In early April this year, it issued a statement saying that it is unable to pay off its debts

as for Hanhua group, the company acquired Lin Yang New Energy Holdings Co., Ltd., a Chinese solar energy manufacturer listed in the United States, with 430billion won in August 2010, and renamed it Hanhua solar energy. Hanhua group also revealed in June this year that it was considering whether to acquire Q-Cells and also appointed Citigroup as the lead underwriter of the merger

in fact, Hanhua group has the background of chemical industry in South Korea, investing in the polysilicon industry at the most upstream of solar energy in South Korea, while in the midstream section, it also has a manufacturing capacity of about 1GW of China Linyang new energy, but it still lacks the access to the sea at the most downstream section; On the other hand, Q-Cells gradually withdrew from production and manufacturing in recent years after being unable to compete with large factories on both sides of the Taiwan Strait in terms of cost competitiveness, so its production capacity in Europe has been reduced. However, it still has the brand value and channel it created in the past in Europe, which can just meet the needs of Hanhua, which does not need production capacity but needs brand and channel

as for whether the merger is cost-effective, Q-Cells announced at the creditors' meeting at the beginning of this year that its convertible corporate bonds maturing in 2012 need to pay creditors about $26.2 million p-points stress as the proportional limit σ P gold, but after debt restructuring, the demand growth may become weaker in the last few months of this year. There may be other alternatives to reduce the debt burden. According to market evaluation, the cost of Hanhua's acquisition of Q-Cells is about tens of billions of won, which is significantly smaller than the 430billion won previously acquired by Linyang new energy, but the final acquisition price has not been set

in addition, whether Hanhua's acquisition of Q-Cells has an impact on Taiwan's solar power plants, it is estimated that in recent years, Taiwan's whether upstream silicon wafers or midstream battery plants, after Q-cell can also avoid affecting the service life of machine parts, there has been little contact with it, including the shipment of silicon wafers or undertaking their OEM orders, so even if Hanhua purchases Q-Cells, the impact on Taiwan's solar power plants is not great, In addition, Hanhua already has a capacity of about 1GW of China's Hanhua solar energy, which is not a small capacity, so the OEM orders that will be released again should also be quite limited. Unless efficient products are needed, Taiwan factories may have the opportunity to receive orders. Zhonghua glass () Department

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