GCL-Poly Energy Holdings is purchasing China’s largest polysilicon manufacturer Jiangsu Zhongneng, for $3.4 billion under the assumption that the Chinese government will support and expand solar energy projects.
While this deal may not capture the imagination of many Americans, it’s a big signal that China will push hard on expanding its solar power. The nation said it hopes to install 10 GW of solar energy by 2020. It probably won’t be getting too many panels from the U.S.
Of course, there could be another, less forthright reason for this tie-up. The Chairman of GCL is also a major holder of Jiangsu. So, he could be making a profit on this deal or just wanting all his eggs in one basket.
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