The Fair Trade Commission (FTC) yesterday approved Neo Solar Power Corp’s (新日光) application to acquire a local peer, saying the deal would not hamper competition in the local market.
Neo Solar Power, the nation’s bigggest solar cell module manufacturer, plans to buy out solar cell maker Delsolar Co Ltd (旺能光電), after purchasing a 15 percent stake in the company in a NT$440.34 million (US$14.9 million) cash-and-share swap deal in December last year.
“Although Neo Solar is the nation’s largest solar cell maker, it faces competition from around the world because the entry barrier for solar cell manufacturing in Taiwan is low,” the commission said in a press release.
In addition, about 90 percent of the solar cells made in Taiwan are exported to the US, Europe and China, and prices are determined by global market factors, the commission said.
The world’s 10 largest solar cell manufacturers account for about 40 percent of the market, with each firm holding about an equal share of the global market and the rankings constantly changing, the commission said.
As a result, competition would still be severe after the buyout, it said.
Neo Solar would not expand its market share significantly after acquiring Delsolar, a small player in Taiwan, it said.
The commission also cited easy access to technological know-how and no minimum capital requirement for investment as factors behind its approval of the deal.