Chinese solar manufacturer LDK Solar (NYSE: LDK) has acquired 70% of project developer Solar Power, Inc. (SPI) (OTCBB:SOPW) for approximately $33 million.
LDK paid an initial $10 million in January and today announced it has finalized the transaction with a second payment of $23 million.
LDK – like other major solar makers – now has a development partner that can create demand for its panels by developing utility-scale projects.
SPI said the transaction strengthens its balance sheet and will enable it to the accelerate development of its project pipeline, which primarily consists of utility-scale power plants and commercial/industrial distributed generation systems.
"SPI provides a strong strategic complement to our downstream vertical integration opportunities and provides LDK Solar and SPI the opportunity to jointly explore opening manufacturing operations in the U.S. to further enhance SPI’s competitive advantage in North America," said Xiaofeng Peng, Chairman and CEO for LDK Solar.
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