download (15).jpg (Photo : Reuters)
Chemical materials firm China National Bluestar will be purchasing solar panel manufacturer REC Solar for 4.34 billion Norwegian kroner ($640 million). Bluestar also plans to combine REC with one of its Norwegian assets it acquired in 2011.
The Chinese chemical firm said on Monday that it would be paying a 15.9-percent premium in a deal recommended by the solar panel firm's board of directors, and that it would be combining REC Solar with Elkem, a solar grade silicon manufacturer acquired by Bluestar.
The deal was made a year and a half after REC put its solar panel sector for sale and moved its base from Norway to Singapore.
The headquarters' move to Singapore was due to the high operating costs in Norway and fierce competition with China.
REC Solar observed unfortunate market decline this year as its Q3 revenue fell as solar panel prices declined by almost 5 percent.
Bluestar acquired Elkem for $2 billion in 2011. It is considered as one of the largest industrial acquisitions by a Chinese firm in Europe.
Helge Aasen, the CEO of Elkem, said that the Elkem Group of companies is aiming to expand into the solar power industry. Aasen added that one of the firm's goals is to set up an integrated photovoltaic system player that will be leading in the industry.
According to Enger from REC Solar, the solar power market, which was previously in Europe, is now in Asia. Enger expects that the industry will be as large as the oil industry.
