Solar company SMA forges ahead with rising shares - New strategic alliance announced
In a significant development for the solar industry, SMA Solar Technology AG and Danfoss have announced a strategic partnership aimed at advancing solar technology and bolstering the sector's potential for growth.
This collaboration, which is seen as a turning point for the struggling German solar sector, comes at a time when the industry has been grappling with political turmoil and financial challenges. The largest provider in the German solar sector, Solarworld, is currently undergoing a financial restructuring.
The partnership between SMA and Danfoss involves a proposed acquisition by Danfoss of a 20% stake in SMA, subject to the approval of antitrust authorities. SMA aims to acquire Danfoss' inverter business, a move that is expected to be positively received in the short term by traders such as Stefan de Schutter of Alpha Wertpapierhandel.
Andreas Lipkow, a trader at asset manager Kliegel & Hafner, views the partnership as a sign that the German solar sector is finding a bottom. He believes that the solar industry, according to Lipkow, can no longer get much worse. Analysts are likely to praise the transaction, given the potential synergies between the two companies.
The partnership encompasses multiple facets, including joint efforts in research and development, close cooperation in procurement and manufacturing, and combined strategies for sales and market expansion. The joint R&D focus is on developing high power density SiC power modules optimized for solar power systems, leveraging advanced semiconductor technologies.
The collaboration also aims to enhance efficiency and reliability in solar inverter production by sourcing and integrating cutting-edge components. The combined expertise and market reach of the two companies will target global growth in photovoltaic and energy storage markets.
Danfoss, a global leader in energy-efficient drives and battery-based energy storage systems, aligns well with SMA's expertise in photovoltaic and storage system technologies. This synergy strengthens their joint value proposition in renewable energy solutions.
The strategic move by SMA Solar is seen as a potential game-changer for the solar sector, indicating a possible recovery from the challenges faced in recent years. The details of the transaction are still being negotiated, but the partnership is undeniably a step in the right direction for the future of solar technology.
This strategic partnership between SMA Solar Technology AG and Danfoss, as pointed out by analysts, signifies a potential turning point for the German solar sector, with the aim of advancing solar technology through joint research and development efforts. The collaboration also seeks to enhance efficiency and reliability in solar inverter production by leveraging advanced semiconductor technologies, which are crucial for the future growth and success of solar technology.
