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China’s Haitian Group has agreed to acquire Heraeus’ photovoltaic silver paste business for $686 million, including 100% equity 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 CNY 5.02 billion ($686 million), marking a shift toward renewable energy. The deal, made through Haitian Solar, includes full equity stakes in Heraeus Photovoltaics (Shanghai), Heraeus Photovoltaic Technology (Shanghai), and Heraeus Photovoltaics Singapore. It also covers outstanding debts owed by these units to their parent companies. The counterparties include Heraeus China and Heraeus Materials Singapore, which are subsidiaries of Germanys Heraeus Holding GmbH, a global supplier of precious metals and technology. Heraeus posted revenues of €25.6 billion ($26.6 billion) in 2023. Haitian Group’s core operations focus on urban water supply, sewage treatment, and waste-to-energy projects. However, it has faced challenges such as reduced demand for new water infrastructure projects and stricter financing requirements. Haitian said it is now targeting growth through the Heraeus silver paste business, due to the limitations of its existing business model. But it noted risks such as the cyclical nature of the solar industry and cross-border management complexities. The acquired units generated €300 million in revenue in 2023 but posted a loss of €6.11 million. In the first half of 2024, revenues fell to €125 million, with losses widening to €6.86 million. Heraeus will inject additional capital into its subsidiaries before the deal closes, including CNY 200 million for Heraeus Photovoltaics (Shanghai), CNY 130 million for Heraeus Photovoltaic Technology, and $5 million for Heraeus Photovoltaics Singapore, while settling outstanding bank loans. The acquisition has secured internal approvals from Haitians board and the Heraeus Group, but still needs the green light from China’s National Development and Reform Commission (NDRC), the Chinese Ministry of Commerce, and the Chinese State Administration of Foreign Exchange. Singapore’s foreign investment authorities must also approve the deal. |
