Tongwei plans to acquire polysilicon competitor Qinghai Lihao

Tongwei's planned acquisition of Qinghai Lihao, a polysilicon competitor with a 50,000 metric ton capacity, signals a move towards further consolidation within the solar sector. The acquisition, structured as a share-and-cash transaction, aims to bring Qinghai Lihao fully under Tongwei's ownership. While the deal is still in its preliminary stages and subject to regulatory approvals, its successful completion would significantly increase Tongwei's polysilicon production capacity and market share. The sellers include Hainan Zhuoyue Enterprise Management Partnership, Hainan Haoyue Enterprise Management Partnership, Qinghai Lihao, and Duan Yong. The undisclosed value of the transaction makes it difficult to fully assess its financial implications. However, given the capacity of Qinghai Lihao, the deal is likely to be substantial. The acquisition is notable due to Tongwei's position as a major player in the polysilicon market and the potential impact on market dynamics. The deal's progression will be closely watched by industry participants and investors, particularly regarding regulatory scrutiny and the final terms of the agreement.