The Chinese Haitian group has agreed to acquire Heraeus’ photovoltaic silver paste business for $68.6 million, including 100% shares in Heraeus Photovoltaics (Shanghai), Heraeus Photovoltaic Technology (Shanghai) and Heraeus Photovoltaics Singapore.
Chinese conglomerate Haitian Group has agreed to acquire Heraeus’ photovoltaic silver paste business for CNY502 million ($68.6 million), marking a shift to renewable energy.
The deal, closed through Haitian Solar, includes full equity stakes in Heraeus Photovoltaics (Shanghai), Heraeus Photovoltaic Technology (Shanghai) and Heraeus Photovoltaics Singapore. It also covers the outstanding debts of these units to their parent companies.
The counterparties include Heraeus China and Heraeus Materials Singapore, subsidiaries of Germany’s Heraeus Holding GmbH, a global supplier of precious metals and technology.
Heraeus achieved a turnover of 25.6 billion euros in 2023.
The Haitian Group’s core businesses are focused on urban water supply, sewage treatment and waste-to-energy projects. However, the country has faced challenges such as reduced demand for new water infrastructure projects and stricter financing requirements.
Haitian said it is now focusing on growth through Heraeus’ silver paste business, due to the limitations of its existing business model. But risks were also noted, such as the cyclical nature of the solar industry and the complexity of cross-border management.
The acquired units generated a turnover of €300 million in 2023, but recorded a loss of €6.11 million. In the first half of 2024, revenues fell to €125 million, with losses rising to €6.86 million.
Heraeus will inject additional capital into its subsidiaries before the deal closes, including CNY200 million for Heraeus Photovoltaics (Shanghai), CNY130 million for Heraeus Photovoltaic Technology and $5 million for Heraeus Photovoltaics Singapore, while settling outstanding bank loans.
The acquisition has received internal approval from the Haitian administration and the Heraeus Group, but still needs the green light from China’s National Development and Reform Commission (NDRC), China’s Ministry of Commerce and China’s State Administration for Foreign Affairs. Singapore’s foreign investment authorities must also approve the deal.
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